| The importance of having adequate life cover | | | | of life insurance cover available. |
| should never be underestimated - and the solution | | | | This is because if the policyholder (or policyholders |
| may be in taking out fixed term life insurance | | | | in the case of a joint life policy) survives the term |
| cover. | | | | of the policy, it expires and no payment is made. |
| But first of all, why is life insurance so important? | | | | As the lump sum payment is only made on the |
| Sadly, many people see it as an unnecessary | | | | death of the policyholder, this makes the life |
| expense, thinking that once they die, why will | | | | assurance premiums less expensive than some |
| they need the money? However, life insurance | | | | other life insurance plans. |
| provides financial protection for the loved ones | | | | Fixed term life insurance can also have additional |
| you leave behind. | | | | benefits such as payment of the lump sum upon |
| For example, if you died tomorrow, would your | | | | diagnosis of a terminal illness (such as cancer) |
| partner be able to meet the monthly mortgage | | | | during the term of the policy. |
| repayment and day to day bills on one salary | | | | The term will normally fixed to match your |
| alone? Would they be able to live the same | | | | personal financial circumstances - for example, if |
| lifestyle without your salary? Or would they need | | | | you have twenty years to go on your mortgage, |
| to sell up and downsize, possibly uprooting your | | | | then you need life insurance to cover at the least |
| children in the process? | | | | the period until your mortgage is paid off. Or you |
| It is unlikely that they would be able to cope | | | | may want it to run up until you plan to retire. |
| financially on just one salary alone - and nor would | | | | As with all insurances, do shop around to find the |
| you want them to be put under financial stress | | | | right deal for you - you'll be surprised how much |
| while coping with their grief. | | | | prices can vary from insurer to insurer even |
| The positive news is that the life insurance | | | | though they are offering the same level of cover |
| doesn't have to be expensive - and fixed term | | | | and benefits. |
| life insurance can be fairly cheap. | | | | Finally, if you are unsure about any aspect of |
| Fixed term life cover is insurance that pays out a | | | | your chosen cover, then speak to your life |
| lump sum should the life insured (ie. the | | | | insurance provider or seek independent financial |
| policyholder) die during the term of the policy. It is | | | | advice. |
| a simple and probably the most inexpensive form | | | | |