Life insurance can mean different things to different companies. For some, it should perhaps read death insurance because all that your relatives are going to get are the funeral costs and maybe a lump sum. This is why it makes sense to go visit an independent broker or have a good look online so that you can compare insurance prices and policies.
Some life insurance might look cheap when you start out but if the percentage rate goes up every year, you could find yourself paying out more money or getting back less than you thought. Life insurance policies have different premium rates. The premium is the amount you pay every month or every year. If you decide to stop paying your premiums, there is no guarantee that you will ever get any of your money back. These are sometimes called lapsed policies; people might think that they are insured but if they have not kept up regular payments, there could be nothing at the end of it.
Life insurance should be about life, not just death. Some policies have built-in protection if you have an accident or if you are off work for any length of time through no fault of your own. Other policies will pay you some money if you have to spend time in hospital. This means that when you compare life insurance, do not compare on price alone. Make it your business to find out exactly what your policy offers and how much it is going to cost.
If you have a family, you might want to take out life insurance that pays your funeral costs and enough money to your family to ensure that they can still have some sort of decent living standard if something happens to you.
There is a tendency when you are young to think that you will live forever and that life insurance is for old people. But what will happen if you are suddenly taken ill and unable to work? You might be able to survive on sickness benefit but you would not have a very good standard of living. Under these circumstances, the right sort of insurance could make all the difference. Just be sure to do a comparison before you buy.
She remembered when, almost ten years to the day, when she, a receptionist in a small company married Michael, who was the Sales Manager in her company. She remembered their wedding day, the vows, her friends, her relations, everyone. Her honeymoon with life had just begun.
It seemed like only yesterday when Michael had grabbed her in his arms and carried her into this very house. Michael was so charming, so full of fun and energy and there was never a dull moment in Margaret's life.
Margaret remembered the days when she had brought her two sons, David and Jonathan, into their lives. She remembered the joys of raising her two boys and how Michael helped her in their parental duties every step of the way.
Michael was a good husband and a great father. He spared no expense to ensure that his sons went to the best schools, he worked overtime to repay the mortgage on their modest property. He had done everything in his power and ability to keep his family happy. Margaret had never felt the need to work nor did she develop any new life skills.
And then, out of the blue, Margaret's life changed forever. Michael was diagnosed with an aggressive type of cancer. The hospital did its best to cure him; they tried chemotherapy, radiation, etc. Nothing helped and within a month, Michael had passed away, leaving his loved ones behind.
And that is when Margaret's honeymoon with life really ended.
Whenever the bread winner in any family passes away, everything boils down to money. Michael had not protected himself financially and had neither health insurance nor life cover. He'd always believed that he was too young and it would be something he'd get around to. The schooling and the living costs ate up his salary and all that was left was the house. The very place where Margaret had lived her life and now she was being forced to sell.
Margaret had to sell the house to pay debts. There were school fees due. Then there was that loan Margaret had taken from a friend to pay the funeral expenses. After that, there were the daily living expenses. And there was no one to provide for the house.
If only Michael had provided for his family by covering himself with a life insurance policy. Things would have been different today. Margaret would not have to sell the house and move to an unfamiliar area to buy a cheaper property. Nor would her sons be exposed to the harsh realities of life at such a tender age.
Her eyes still wet, Margaret signed the sale deed. She had sold the house for just under GBP 300,000. She would now use half this money to buy a small 2-bedroom semi and use the rest to pay the hospital bills and other debts. What little was left was deposited in the bank.
Margaret was starting life all over again. A life where she needed to work, where she needed to pick up new skills and a life that would never be the same again.
That was Margaret's tragic story. And, for all you know, this could be the story of thousands of Britons.
If you have financial responsibility for others, you need to realise that anything can happen in life and you must be prepared for any eventualities. You owe it to your family, to those left behind, just in case the worst should happen. You need to be protected.
Derek Rogers has sinced written about articles on various topics from Leadership, Food and Drink and Computers and The Internet. Derek Rogers represents Protected, a UK based site that compares life insurance rates.. Derek Rogers's top article generates over 74000 views. to your Favourites.