It is never easy coming to terms with the loss of a loved one and adding financial burden to the grief can make coping increasingly difficult. Life assurance can help to support your family after you die, or even a business partner.  Life assurance is a policy that pays out a lump sum in the event of the policyholder's death, with the purpose of protecting loved ones and dependents against financial hardship.

Reasons to take out life insurance could include:

• Mortgage repayments - do you wish to arrange for your mortgage to be paid off on your death?
• Replacing the primary earner's salary - ensuring the family does not fall on hard times after your death.
• Replacing childcare - the death of the primary childcare provider could lead to the need for childcare expenses.
• Education expenses - cover for school/university fees after the death of the primary earner.

Whether it's about leaving your debts behind or ensuring your family can maintain the standard of living to which they were accustomed, it's clear there are plenty of reasons to look for the best life insurance policy for your personal circumstances.

What are the options when selecting a Life Assurance plan?

Life insurance is usually available on a single or joint life basis with benefits including paying out on the diagnosis of a terminal illness. If the policyholder is alive when the policy expires no payment is made and, should the policyholder stops paying premiums at any stage, the policy has no value.

There are several types of life insurance:

• Level term assurance - designed to pay out a sum of money if the policyholder should die during the policy's term. The sum assured is guaranteed and remains unchanged throughout the term. This could be suitable for someone who has an interest only mortgage.
• Decreasing term life assurance i.e. mortgage protection cover - where the sum decreases during the policy. It is regularly used to protect capital and interest repayments on a mortgage.
• Renewable term assurance - On the expiry date there is an option to continue without a health review.
• Convertible term assurance - Level term insurance with the option to revert to whole life or endowment insurance.
• Increasing term assurance - Due to inflation the value of money declines each year. Consequently, this form of insurance combats that with an escalating sum assured.
• Index linked term assurance - Some insurers provide the option for the premium to be increased each year in relation to the Retail Price Index.

For further assistance, call us on 0800 612 7688.