What Actually is Life Cover Insurance and How Does it Work?

Due to schools in the UK not always teaching students about things which are entailed in adulthood such as bill paying, insurance and other monthly financial aspects of life, it’s okay to feel as if you don’t know how about life cover insurance, although not to worry, Archery IFAA has you covered.

 

In this article we will be breaking down what life insurance cover is, and everything that is associated with it in a basic and easy to understand manner.

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What is life insurance?

Sometimes referred to as life assurance or life cover, life insurance is a way of protecting your family from the financial troubles which could happen if you were to pass away. Sometimes it can be commonly misconceived as some sort of banking savings or investment scheme, although it’s much more similar to the same way you’d insure a house or a car.

 

How do you pay life insurance?

Life insurance is traditionally paid in a monthly to annual direct debit, depending on your preference. Based on the insurance companies package or plans, you’ll choose one which makes sense to you, based on your current income and other aspects.

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How much does it cost?

There can be many factors which go towards deciding how much you’ll be paying on a monthly or annual basis; the factors include the likes of:
– Age
– Family size
– Size of plan
– Your health
– Debt
– Job role

 

Why would I need life insurance?

For most it comes to peace of mind. If it’s you who is bringing in the major of the household’s income you might ponder how your family would cope without you being there to support them. So if your family relies on your monthly income in order to pay for bills, food and clothes, if you were to pass away, they would receive a sum of money which would see that they are financially stable. Due to the potential risks of leaving your family with no money, it’s highly recommended that the dependent members of the family should pay monthly life insurance to limit the risk if the worst was to happen.

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What types of life cover are there?

The basic life insurance – This is prepared and set up so that you know exactly how much will be given out to your family if you were to die. The more that you pay monthly the more the insurance company will accommodate to the lifestyle of the family, contributing towards living expenses, child care costs and other things of this nature.
Critical illness cover – This is a feature which isn’t payed for alone, but more of an add-on to the basic life cover payments, it essentially means that if you come into bad health with a disease such as cancer, your family will be supported financially although you are unable to work.

 

Looking for more information on life cover?

We hope that this basic and simple straightforward information on life insurance was of use for introducing you to the subject, or helped increase your knowledge of how it works. If you are looking for more extensive information life insurance, check out mortgage protection insurance for factors and advice from experts.