If you have a family or other dependants, then you should consider Life Insurance. We've listed some of the most important reasons to invest in a policy.
Providing Financial Support
If you have a family, and particularly if you're the main breadwinner, then Life Assurance cover is essential. If you die, the payments will replace the income your family currently receive from your work. Life Assurance will ensure that your family are well looked after financially after your death.
Providing Money to Pay Off Debts
On your death, you may leave a number of debts. Mortgage, car loans, holidays, medical bills, and credit card debts can all add up, and these must be paid from the assets you leave behind. This could have a serious effect on your family, and Life Insurance cover redeemable as a lump sum will pay these off, leaving your other assets intact for your family to use.
Providing Liquid Assets
When you die, probate requires that your family pay what is usually a significant amount of money in tax and other expenses. The total value of your estate consists of liquid assets (like cash) and illiquid assets (such as your home or car). Unfortunately, the value of the illiquid assets is often greater than the value of the liquid assets. This may mean that your family would have to sell off your home or car in order to meet these financial obligations. This could cause your family a considerable financial loss if your assets must be sold cheaply in order to raise the money on time. With Life Insurance the proceeds are available almost immediately upon your death, and will avoid any difficult situations for your family.
Providing an Estate
If you'd like to leave an estate for your heirs, Life Insurance will automatically provide assets for your family after your death.
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