Life Assurance - What You Need to Know

What if you die? Is your family protected or are you leaving them with nothing? These are scenarios that no one wants to think about but it's something you need to address if you want your family safe from financial problems after your death. Don't be like some people who put off the discussion because it's unpleasant and uncomfortable. If you get this done today, the reward is peace of mind knowing that you invested right for you family's welfare.
If you're thinking of getting a life assurance policy for your family but don't know where to start or where to look, this guide will help you understand the finer points of the financial product.

What is life assurance?

To get off on the right foot, let's first define what life assurance is. Put simply, life assurance is a contract or a policy between two parties - you (the policy holder) and the insurance company (the insurer). In exchange for benefits, you have to pay a premium for duration of time so your family can avail of said benefits after death.
In general, typical life assurance offers a lump sum which your family will receive for funeral and other expenses. The amount and the extent of the benefits will primarily depend on what type of policy you hold. As long as you have one, you can rest assured that your family has some financial stability to fall back on when you're gone.
There are also different types of life assurance and you can know more about them at Telegraph UK.

How much of it do you need?

With so many life assurance policies to choose from not to mention that the products can be really confusing for lay people, how do you know how much cover you'll need?
There are certain considerations to take into account. For one, you need confirm whether your employer already pays for a life assurance for you. Many companies in the UK include basic policies which cover death benefits. If you die while still with the company, you beneficiaries receive a lump sum.
If your employer doesn't have life assurance for you then it's time to buy one yourself. Before choosing the right products for your needs, however, you should also consider your salary, debts and the needs of your dependents.

How much does it cost?

The cost of life assurance varies from one policy to another. In general, your monthly premium will depend on a number of factors including the type of cover, the amount, insured's age, and insured’s sex, length of cover, occupation, income and medical history among other things.
There is no standard cost but the general prices for policies have dropped dramatically in the last years. This is good news for first time applicants. But just the same, if you want to find the cheaper policies, what you need to do is perform your own research and definitely shop around. Don't forget to use comparison sites when pitting one company against each other while you're at it.