Life Insurance - Why do you need it?

You may want Life Insurance to provide some financial protection for the family or to cover the payment of an Interest Only Mortgage.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

What is Life Insurance?
Life Insurance is also known as Term Insurance.
What do you need to know about Life Insurance?
Life Insurance pays out a tax-free lump sum if you die; there is no investment value.
Is there any investment value in your policy?
No. Once the term is completed the policy simply ends. It’s a bit like car insurance!
What personal details do you need to provide to get a quotation for Life Insurance?
Only your date of birth, sex and whether you're a smoker. So it's really simple to get an immediate quotation.
What is the Difference Between Critical Illness Insurance and Terminal Illness insurance?
Critical Illness Insurance is much more comprehensive than Terminal Illness cover.
There is no law that says you must have Life Insurance, but many people do consider it a vital aspect of financial protection. It can provide some financial peace of mind if the worst were to happen. Many people simply want it to help provide a tax-free lump sum for their family or relatives if they were to die.

Another frequent use is to repay a Mortgage if the mortgage holder were to die. Taking out life insurance ensures that you can be certain that your mortgage will be completely paid off if you die during the policy’s term. Usually it will be a condition of the mortgage lender that you take out Life Insurance to cover a mortgage.

If you do not have dependants, you may feel that it is better to take out Critical Illness Insurance. That way you benefit from the cover yourself if you become critically ill or permanently unable to work through illness or injury.

If you do have a family you should consider insuring against critical illness as well as taking out Life Insurance, so that the mortgage would be paid off or a lump sum provided if you become critically ill or unable to work.

Frequently Asked Questions related to the above topic.
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