Life assurance isn’t something everybody needs to take out, but if you have dependents such as school-age children then it could be vital. The financial help your loved ones can expect from the government in the event of your untimely death is minimal, and could leave them in very difficult circumstances, even facing the possibility of homelessness. But with life assurance, you have the guarantee that they’ll at least be able to stay in your home with the mortgage paid in full.
It’s possible to take out a whole-of-life policy to cover you for as long as you choose rather than running for a fixed term. This type of policy is commonly used to cover inheritance tax bills and funeral costs. It may be that you need to be of a certain age to apply.
Term assurance is a good choice if your main concern is making sure your family is housed. You can opt for level term assurance, which provides a fixed level of cover over the time you specify, or decreasing term assurance. This gives a level of cover which decreases over time to reflect the amount of your mortgage still outstanding.
It’s important to realise that life assurance is intended to offer financial security only in the event of your untimely death. If you’d like to cover yourself against illness, disability or unemployment you’ll need to take out specific protection against those eventualities. A good starting point if you think you need life assurance is to call our expert advisers. They can talk you through your options and match your needs with the most suitable policy at the right price.