Reap the Benefits of Life Assurance Why Everyone Needs It

Reap the Benefits of Life Assurance: Why Everyone Needs It

The importance of life cover cannot be understated. It’s one of the most important forms of financial protection for you and your family. It can provide you with a reliable source of income, should anything happen to you or your partner.

Life assurance, in particular, is one of the best ways to ensure our families are protected after your death. This article will explain why life assurance is important, and the main benefits. 

Reap the Benefits of Life Assurance Why Everyone Needs It

What is life assurance?

Life assurance is a form of life insurance that offers guaranteed payouts to policyholders’ beneficiaries when they die. It is often referred to as “whole of life” cover, since it covers an individual for their entire lifetime.

Unlike life insurance, which has a set term and therefore doesn’t guarantee a payout, life assurance provides cover for an individual’s life. This makes it more reliable, yet more expensive in terms of premiums.

Since cover is indefinite, premiums for life assurance tend to be higher than regular life insurance policies. However, these can also increase over time if chosen by the policyholder.

Benefits of life assurance

Life cover can be the foundation of a family’s financial security, providing peace of mind in times of crisis.

From providing financial protection, to helping you meet long-term goals, such as retirement, life assurance can offer many benefits:

Prepares for the unexpected

No matter how well-planned or organised you are, life can often throw unexpected surprises your way.

Life assurance provides a financial safety net in the event of an unexpected death. Meaning your family will not be left without support if the worst was to happen. It can help to:

  • Replace lost income
  • Keep up mortgage payments
  • Cover funeral costs
  • Pay off debts
  • Provide for children’s education
  • Enable long-term financial planning

Your policy can also be used to plan for the future. It can help meet your long-term goals, such as saving for retirement or funding a child’s education.

Financial Security for Your Family

Securing financial stability for your family is one of the most important goals you can work towards. It requires careful planning and preparation to build a strong foundation for long-term success.

Life assurance provides a reliable source of income, so no matter what happens, your family will be taken care of. It can help you save for the future, ensuring your loved ones are provided for in the event of death.

Guarantee a Sum of Money Upon Death

One of the biggest advantages of life assurance is that it guarantees a certain sum of money upon the death of the policyholder. These payouts are usually free of tax, providing financial security for your family.

However, a payout is only guaranteed so long as you maintain your premium payments.

When you purchase a life assurance policy, you will be required to pay a monthly premium to remain covered. The cost of these premiums depends on several factors, including:

  • Your age
  • Current health
  • Medical history
  • The amount of cover needed
  • Whether you smoke (smokers pay higher premiums for cover)
  • Occupation

The higher the amount of cover, the more expensive the policy will be. Therefore, it’s important to consider your financial situation before committing to a policy.

Furthermore, if you have any pre-existing medical conditions, you may be subject to higher premiums. This is due to the increased risk of death associated with certain medical conditions.

You Can Leave Behind a Legacy

Everyone wants to leave behind something of value, and life assurance is the perfect way to do it. By planning ahead, you can provide an inheritance for your family, helping them enjoy the future ahead.

With life assurance, you can leave a legacy for your children, grandchildren or even charities. You can also use it to pay for college education expenses or anyone’s private medical bills down the line.

How to save on cover

Saving on life assurance cover doesn’t have to be complicated. There are several steps to take to pay less for coverage without compromising your protection.

1. Opt for term life insurance. Term life insurance is a cost-effective way to protect your family. It provides coverage for a specific period of time and pays out a lump sum if you die within that period. It’s ideal for those who only need short-term cover, but still want financial protection in case of death.

2. Consider a joint policy. Joint policies can significantly reduce costs compared to two individual policies. So it’s worth considering if you and your partner are both in need of cover.

3. Shop around. Shopping around for the best deal is one of the best ways to save on life assurance cover. Compare different providers and coverage levels to get the most bang for your buck.

All in all, life assurance is a great way to provide financial security for your family in the event of death. It can help you plan for the future and guarantee that your loved ones are taken care of.

It’s important to consider all factors when selecting a policy, taking advantage of any savings opportunities available.