Why do I need life insurance?
Coming to terms with the loss of a loved one is never an easy thing to do and adding financial burden to the grief can make coping increasingly difficult. Life insurance on its own is a relatively cheap way to overcome this problem and receiving a lump sum of money can help to support your family or even a business partner after you die. Some of the reasons to take out life insurance could include:
Repaying the mortgage or any lending commitments
Providing additional cover to protect the family
Provide cover for education expens
Whatever the reason it is important to ensure your family can maintain the standard of living to which they were accustomed.
There are various types of life assurance policies
A policy designed to pay out the same level of cover throughout the policy term. This can be used in conjunction with an interest only mortgage.
Decreasing Term Assurance / Mortgage Protection Plan - The policy pays out an amount (sum assured) which reduces throughout the term of the plan and is mainly used to protect repayment mortgages or possible to cover a loan.
Convertible Term Assurance
The sum assured stays the same for the term of the policy. However, for an additional cost you will have an option to convert this original plan, or part of it, to another type of policy.
Family Income Benefit
Family Income Benefit (FIB) provides a tax free regular income which is paid out for the remaining term of the policy if you die. FIB can provide a replacement income and may be index-linked to inflation.
Death in Service Benefit
Death in service benefit is the name for cover, which can be provided by your employer if you die while employed. This is generally between 2 and 4 times your salary, though not all company’s provide it and it is worth checking with your employer before taking out any additional cover. However don’t forget the cover belongs to the employer so if you change your job, your new employer may not offer you this.
IMS have access to a wide range of insurance products from leading companies such as Aviva, Legal and General and BUPA that provide a comprehensive and competitive product range