According to stats, only 57% of people have life cover, and 70% of those are underinsured. This leaves their families with inadequate cover and in financial distress when they pass on.

Life cover is essential to ensure that your family and loved ones are taken care of in the unfortunate event of your demise, whether during your working life or during retirement.

Why do you need life cover?

• It will provide your family with financial stability when you are no longer around
• It will pay off large debt like a mortgage
• It provides for your children’s education
• It will ensure that you leave an inheritance for your children
• It gives you peace of mind knowing your family is taken care of.

Kinds of Life Cover

• Whole life cover

This is life insurance that covers you for your whole life and will pay out a lump sum amount to your beneficiaries no matter when you die e.g., policy of £200 000 life cover will pay out when you die.

• Term life cover

This is life insurance that is chosen for a particular term length and will pay out if you die within that period. If you don’t die during the selected term, it will not pay out to your beneficiaries and your premiums are not refundable. 
There are 3 kinds of Term Life cover.

• Level term – This cover pays out a fixed lump-sum amount if you die within this term e.g., you take out £100 000 life cover over 40 years. Whether you die in 1 year or in 39 years it will pay out £100 000 to your beneficiaries.
• Increasing term – This life cover increases annually throughout the term of the policy to keep up with inflation so that your beneficiaries can make the most of the lump sum.
• Decreasing term – e.g., to cover a large debt like a 30-year mortgage. In year 1 debt is £300 000 and cover is £300 000. By year 25 the remaining debt is £50 000, and cover will drop to £50 000. *

For many, life cover is a thing that seems very far away or a waste as you never see the results, but not having it will be far more detrimental for the ones you leave behind. Chat to your adviser to find the life cover that best suits your current circumstances and protects your assets. [email protected]

* https://www.which.co.uk/money

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.