life-insurance-familyLife insurance policies are one of the most reassuring ways to protect your family financially, in the event of your death. By paying a monthly premium, you can ensure that the people you love receive financial support once you’re gone.

 

 

At the end of your life, if you’re covered by a life insurance policy, then the money is paid directly to your estate or to a named beneficiary. Writing a will is the best way to guarantee family entitlement to a life insurance payout, or to ensure that the intended recipients are the ones that receive your money.

 

 
Take out a life insurance policy whilst bearing the intended beneficiaries in mind. If you’re choosing whole-of-life insurance, then you’ll pay higher premiums but will be covered until you die with a payout guaranteed. If you choose term life insurance, then you decide the term of your policy. If you have children, it’s a good idea to ensure that your life insurance policy will provide upon your death until they’re self-sustaining adults. Also consider any romantic partners, or other dependents, when making your decision. It’s up to you, as the policy holder, to make clear your wishes regarding the final destination of the money that’s paid out.

 

Life insurance is paid out as a tax-free lump sum, to any named beneficiaries. However, your family members may have to pay an inheritance tax. Some policies provide a further lump sum to cover any inheritance tax, and are worth considering if you’re minimising complications for family members.

There are various life insurance policy types on offer, all with their own benefits and features. Most people choose a level-term insurance, which pays out a specific amount of money in the event of the policy-holders death. An alternative is a decreasing term insurance policy, where the potential payout decreases by the year. This second option is better suited to people that are intending for the money to pay off decreasing debts, such as a mortgage.

 

Family entitlement to a life insurance payout usually includes instant access to the full lump sum. It’s also possible to take out family income benefit insurance, which instead pays a monthly income to your family. This option is ideal for replacing a loss of earnings, if you want to ensure that your family receives their money monthly as they did when you were earning a salary.

On top of all of these options, it’s also worth considering joint policies that will pay out if either of the policyholders dies. It usually works out cheaper to insure two lives under one policy, but it’s worth noting that if both policyholders die at the same time then there will be only one payout for remaining dependents.

Using the Best Price Financial Services website, you can get quotes from all of the major providers of life insurance, with 0% commission and a secure online payment system. The purchase process is simple, and you could soon be protected by the right life insurance policy to secure your family’s financial future in case you’re no longer around to provide financial support.


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