Insurance Offers
What is life insurance and do I need it?
Life insurance pays out a lump sum to your loved ones if you pass away or are diagnosed with a terminal illness while your policy’s in place. It’s not a legal requirement, but it could give your dependents financial stability when you die.
It’s common to decide you need life insurance after a big life moment. Things like getting married, buying a house with a mortgage, or starting a family.
It can cover any outstanding financial commitments you have - like your mortgage or loan repayments - so your family won’t be left with payments they can’t afford after you’re gone.
You have a few choices to make before you buy a life insurance policy.
For example, do you want the insurer to pay a set balance when you die regardless of how long you’ve held the policy for? Alternatively, would you prefer the insurer to decrease the value of cover as the policy gets older in line with your outstanding debts?
The policy you pick depends very much on your circumstances.
How does life insurance work?
Life insurance pays out a lump sum if you die. With some policies, a payout is made if you’re diagnosed with a terminal illness too.
You decide how long you want to be covered for, how much you want paid out, and who to, when you take out a policy.
The amount paid out can change over time.
If you take out a level term or whole of life policy, the payout is fixed. With a decreasing term policy, the payout decreases over the term of your cover.