Why Take Life Insurance

14 February 2011 - Which Way To Pay

Why Take Life Insurance

Life insurance, is an insurance policy which pays out to the beneficiary when the insured person passes away. Although it is not compulsory, it is a wise decision to have for anyone who is relied upon for financial support.

In the short term, your loved ones may need to adjust to a new lifestyle, covered by the benefit, as well as to pay for funeral costs, outstanding debts, mortgages etc. In the long term it could pay for the care and maintenance of an elderly parent or a disabled child. It could also cover college expenses and generally keep your loved ones living to the standards they had become accustomed to before your death.

For many people the first time that they come across life insurance cover is when applying for a mortgage. Most mortgage providers insist that the borrower is insured to cover the remainder of the loan should anything go wrong.