Have you considered how your family would cope without your salary? Who would pay your mortgage and bills if you’re not around? Would the family need extra cash to get by?
If you’re looking for life cover or critical illness cover, you may want to consider the following types of insurance to see which best suits your needs:
Level term insurance
The most basic form of life cover and often the cheapest, this will pay a guaranteed, predetermined amount on death (terms and conditions will apply).
The amount payable on death will not change throughout the life of the policy and the lump sum will only be paid if you die before the policy ends. When combined with critical illness cover, if you are diagnosed with a serious medical condition during the policy term, your insurer will pay-out on diagnosis of the illness - providing your condition is fully covered by the policy.
Decreasing term life insurance
The sum payable on death will reduce during the life of the policy. Frequently used as mortgage protection cover, the sum insured will decrease each year ( typically, in line with your mortgage) to pay off the remainder of your mortgage debt upon death.
Renewable term insurance
Allows you to renew the policy on expiry without having to undergo medical or health assessment.
Convertible term insurance
Similar to level term insurance, your insurance provider will allow you to change your policy (to a whole life or endowment for example) normally with no medical assessment needed.
Increasing term assurance
Also known as index-linked life insurance, this type of policy pays a lump sum on death, which increases each year in-line with the Retail Price Index. The policy is not affected by inflation and the cover increases each year. There may be no need for medical or health assessment.