Personal Life Assurance
Many of us will at some stage in our lives have the need for life insurance. Life insurance is an agreement between you and an insurer and under the terms of a life insurance contract, the insurer promises to pay a certain sum to a designated beneficiary when you die, in exchange for your premium payments.
Why do you need life insurance?
The most common reason for buying life insurance is to replace the income lost when you die. When you die and your income stops the life insurance proceeds can be used to continue to support the family members you've left behind.
Another common use of life insurance proceeds is to pay off any debts you leave behind. For example, mortgages, car loans, medical bills, and credit card debts are often left unpaid when someone dies. These obligations must be paid from the assets left behind but can deplete the resources that your family needs. Life insurance can be used to pay off these debts, leaving your other assets intact for your family to use.
Life insurance provides liquidity to your estate. When you die, you may leave some liquid assets (such as cash, CDs, and savings bonds), and some illiquid assets (such as property, vehicles, and business assets). Your liquid assets may not be enough to pay all the debts that you leave behind, plus all the expenses that arise because of your death (like funeral expenses). Your illiquid assets may have to be sold cheaply in order to meet these debts. Life insurance can avert this situation, because the proceeds are available almost immediately upon your death.
We are happy to review and advise on your needs as well as checking how competitive and relevant your existing cover really is.
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