Life Insurance Simplified

Basics of life insurance so that you can make an informed decision

Life! It is a gift and it is something we need to enjoy at its fullest. However, we also must prepare for its ups and downs. Hence, the need for life cover. A life insurance policy will serve as one important component as you build a solid financial foundation for you and your family. In the event of your untimely death, your loved ones will not have to worry about their immediate needs and finances. If done right, your life insurance plan can replace the income you would have earned so that your family can have what they need.

But there are so many questions about getting life insurance: What kind of life insurance do I need? How much of it will be enough for my family? What's a rider? How do I buy a policy?

Here, we will discuss the basics of life cover so that you can make an informed decision as to what works best for your unique situation and help you get a life insurance quote online.

What can life insurance be used to pay for?

Life insurance basically aims to provide funds to replace the income of the person being insured. Life insurance is used to pay for:

  • End of life expenses: One's death may incur hospital bills, as well as funeral and burial expenses
  • Household expenses: Including the basics a family needs such as food, clothing, shelter and transportation expenses
  • Pay a debt: Can be used to pay up a mortgage
  • Fund children's education: Your children won't have to worry about giving up on college because of your death
  • Fund your retirement: Depending on how a life insurance is set up, one can use the cash values accumulated in the policy to help you have money for your retirement. This is only available for some selected life insurance policies.

How does it work?

Life insurance is like an umbrella – when it rains, you take out your umbrella to keep you dry from the storm. The same goes for life insurance. If you are covered with life insurance, when you die your beneficiaries will receive the death benefits (plus any other benefits provided by the policy and its riders). The life insurance policy will cover you for the duration of the term.

How can I buy life insurance?

To help you make this decision, all you need to do is discover the answer to the following questions:

Some tips when buying your life insurance policy:

  • Answer questions truthfully and completely when filling up the application form.

  • Find an insurance company that has a good reputation and is financially stable. You can look at ratings agencies such as Standard and Poor's or Moody's for ratings on the financial strength of companies.

  • When getting the policy, carefully read the policy's terms and conditions to make sure that you know what you are covered for. You have a free-look period where you can opt to cancel the policy and the insurance company will refund all premiums.

  • Check when the policy becomes effective. This is usually found at the summary of the policy.

  • Keep your life insurance policy on a file that your beneficiary knows. This way, they won't have to hunt for it when they will need to make a claim.

  • Regularly review your policy to make sure that it is in line with your wishes and your current situation. Major life events (i.e. a marriage, a divorce, the birth of a child) can change your requirements with regards to the policy.

To get your life insurance quote, please fill this form on the left.

Insurance sites - www.criticalillness.org.uk, www.comparelifeinsurance.net, www.lifeinsurancecover.net, www.lifeassurance.org, www.lifeassurancequotes.org.uk, www.mortgagelifeinsurance.org.uk.