Life Insurance: Protecting Your Loved Ones Future
Life insurance is about as simple as a financial product gets, in concept at least, as it provides financial security for your loved ones in the event of your death. You die, the insurance pays out. Theres a bit more to it but fundamentally that’s it.
Here at GoddardFry, our independent team can help you navigate the different options and find the right life insurance policy for your needs.
There are two main types of life insurance:
Term Life Insurance:
This type of policy offers coverage for a specific period, such as 20 or 30 years. If you pass away during the term, a payout is made to your beneficiaries. Term life insurance is typically more affordable than whole of life insurance, making it a good option for those who want to ensure their family’s financial security during a specific time frame, such as while raising children or paying off a mortgage.
Whole of Life Insurance:
This type of policy provides coverage for your entire lifetime. In addition to a death benefit, whole of life policies also build up a cash value over time. You can access this cash value through loans or withdrawals, but doing so may reduce the death benefit payout. Whole of life insurance is a more comprehensive financial product that can be used for various purposes, including estate planning and wealth accumulation.
How Life Insurance is Used:
Income Replacement:
- Life insurance can provide your beneficiaries with a lump sum of money to replace your income, helping them maintain their financial stability after your passing. It can also be used to provide a regular income rather than a lump sum (this is called Family Income Benefit or FIB for short).
Education Funding:
- Life insurance can help secure your children's education by providing funds for their future college or university expenses if you are not around to do so.
Mortgage Protection:
- A life insurance policy can be used to ensure your mortgage is paid off, or can continue to be paid, if you die. This provides peace of mind knowing your family won't be burdened with additional debt.
Estate Planning:
- Life insurance proceeds can be used to pay estate taxes, minimizing the financial burden on your heirs.
Independent Financial Advice is Key
Choosing the right life insurance policy depends on your individual circumstances, goals, and budget. Our team of independent financial advisors can help you:
- Understand the different types of life insurance and their benefits.
- Compare quotes from various providers to find the best coverage at a competitive price.
- Determine the appropriate amount of cover you need as well as the right term and whether premiums should be guaranteed or reviewable and many other options.
- Integrate life insurance into your overall financial plan.
Contact us today for a free initial consultation and let our experienced team guide you towards the life insurance solution that best suits your needs.
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Alex Fry
Having a wealth of experience designing and managing investment portfolios, Alex has the tools and experience to analyse existing investments and look for alternatives that balance risk and return to deliver the investment journey you require.