Insurance - Expert Partners Offer


foreign exchange at Emigrate UK We have teamed up with LifePlus who can source you the best deal on any insurance requirements you may have when emigrating overseas.

No one likes to think about their death because quite frankly, the thought of dying is just too painful for most people. Due to this reason, most people neglect purchasing life insurance. According to surveys, 1 in 3 people do not have any form of life insurance.

In the event of your death, what would happen to your family if you do not have a life insurance policy? They would not have any financial security and as a result, struggle to pay the bills and make ends meet.

It is vital to understand and review all the different types of live insurance coverage available. Our informative guide to understanding life insurance will help explain all the options available to you. This guide can also help save you money as it will show you the best life insurance policy that is suited to your needs and your family�s needs, at the right price.

Most people understand life insurance coverage as a policy that provides money to the designated beneficiaries in the event of their death. However, the concept of life insurance is not that simple. There are a number of differences that exist between the size of premiums and the types of coverage available.

What Is Term Assurance?

Term assurance is the simplest and usually the cheapest form of life insurance available. Essentially, if you should die while your policy is in effect, the insurance company will pay out a lump sum amount of money. The payout amount is usually decided before committing to the insurance policy. The term of the policy can vary in duration from a couple of years to a few decades. Bear in mind that this form of insurance coverage is not available after a certain age.

Remember that this form of insurance will only pay out if you happen to die within the coverage period. For example, if you purchase a 16 year policy and pass away after 17 years, your family will not be entitled to any payout.

Certain policies may provide a payout (usually a much smaller amount) if you happen to be diagnosed with a serious terminal illness while your policy is in effect. To check if you get this form of coverage, make sure you read the terms and conditions carefully for details.

How Do I Choose The Length Of A Life Insurance Policy?

You should think long and hard about the financial position and requirements of your family before agreeing on a life coverage term. The majority of people want to have an insurance policy that stays in effect as long as they have dependents. For example, if you have kids that are aged 4 and 6, then having a policy that lasts until both of them reach the age of 18 is recommended.

Individuals that do not have any children might opt for a mortgage term or a term that lasts until their spouse either passes away or retires.

How Much Coverage Do I Need?

Most policies have a maximum and minimum payout limits. However, there is usually a lot of flexibility and leniency that exists within those limits. Ideally, you should purchase an insurance policy that provides a big enough lump sum payout to clear any financial debts and still be able to meet the financial needs of your family.

However, the coverage you purchase depends on your circumstances. For example, you would require a substantially large payout if you have 3 young children enrolled in a private school, a second home, and a large mortgage as compared to a person with 1 child in school and a mortgage debt.

Most insurance advisors recommend a payout amount that is 10 times your current income. However, keep in mind that the larger the payout, the more costly the insurance premium becomes.

Remember to take into account the death in service benefits that can be received from your employer. Most companies will payout a lump sum amount that is equivalent to 4 times your current annual salary should you die while you are still employed.

Always review your coverage policy on a regular basis as your circumstances are bound to change. For example, you may get divorced, have another child, purchase a new house and etc. All of these factors affect the payout you receive and ultimately, the premium amount you pay.