Life ASsurance & Business Insurance
What is Life Assurance
Life Insurance pays out a sum of money if you die, helping to protect the people who depend on you financially. That might be your family, your partner or your business partners.
The payout can be used to clear outstanding debts, such as a mortgage, and to support your dependants, either as a lump sum or as a regular income. Even if nobody relies on you financially, some policies can help cover funeral costs, which can run to several thousand pounds.
How much cover do you need?
The right type and level of cover depends on your circumstances. Things to consider include:
- your age and health
- who depends on you, and for how long
- your income
- your debts and other financial commitments
You pay for the policy through regular premiums, monthly or annually. These continue either for a fixed period or, with some policies, for life.
Types of life assurance
The basic idea is simple, but there are several types of policy to choose from:
- Term assurance covers you for a set period, such as the length of a mortgage. It pays out only if you die within that term, which usually makes it the more affordable option.
- Whole of life assurance covers you for your entire life, so a payout is certain provided the premiums are maintained. It is generally more expensive than term cover.
Other variations exist, including policies where the payout stays level or reduces over time, and policies that pay a regular income rather than a lump sum.
Your health and your application
Insurers usually assess your health, age and lifestyle when you apply, and this affects the price and sometimes whether they can offer cover at all. It’s important to answer all questions fully and honestly, as incorrect information could lead to a claim being reduced or refused.
Business Insurance
Why business insurance matters
Every business faces risks in its day-to-day operations, from damage to premises and equipment to claims from customers or employees. Without insurance, a single incident could be costly enough to disrupt trading or even force a business to close.
Business insurance helps protect your finances against many of these risks, so you can operate with greater confidence.
