What is Life insurance and how to find an adviser in Hertfordshire?

At some point in our lives people living in Hertfordshire will have a need for Life insurance. Life insurance is a contract made between the applicant(s) and a Life insurance provider and under the terms of a Life insurance agreement, the Life insurance provider promises to pay a specific amount to a nominated beneficiary when the insured dies, assuming premium payments are kept up to date.

Life insurance gives your nominated beneficiaries, some of which may live in Hertfordshire, some financial security if the insured was to die, which affords greater peace of mind. The various Life insurance options can make choosing the right policy or policies confusing and it’s crucial you do enough research to find a financial adviser in Hertfordshire, for a Life insurance policy that fulfils your needs.

Why do you need Life insurance?

The usual reason for taking out Life insurance policy is to replace lost income when you die. If you are working in Hertfordshire, or surrounding counties such as Middlesex or Buckinghamshire for example, typically your income will be used to support your family so they can continue to live as they did in Hertfordshire. This income will stop if you die and Life insurance can be used to help support family members left behind in Hertfordshire, or surrounding counties.

Another widespread use of Life insurance is to repay any debts left behind. For example, mortgages on houses in Hertfordshire are regularly left outstanding if someone dies. Life insurance can be used to repay mortgage debt, leaving your Hertfordshire home intact for your beneficiaries.

Life insurance provides liquidity; when you die, you may leave some liquid assets (such as cash, and savings), and some illiquid assets (such as property, a car or stocks). Your illiquid assets such as your Hertfordshire home may have to be sold to meet your obligations when they come due. Life insurance is put in place to help prevent your dependents having to sell their Hertfordshire home and other assets, as the proceeds from a Life Insurance policy are available almost immediately after death.

Life insurance can be used to give to charity when you die. You may have the desire to give to a local charity in Hertfordshire, but have never been able to afford to. Life insurance can be used to fulfil this.

The cost of Life insurance is dependent on the type of Life insurance policy, your age, and your health, but typically won’t be affected by where you live in Hertfordshire or other parts of the UK.

There are a range of Life insurance policies available to residents of Hertfordshire, which are as follows:

Level Term Life insurance

A Life insurance policy which pays a cash lump sum if you die during a specific term.

Mortgage Protection Life insurance

This Life insurance is calculated to cover a repayment mortgage on your Hertfordshire home, if you were to die. The sum assured payable reduces inline with your decreasing mortgage debt.

Term Life insurance - Increasing

Has higher premiums because the cover increases every year without the need for a medical. The increase in cover can be liked to the Retail Price Index, a specified percentage rate, etc.

Family income protection Life insurance

This type of Life insurance is different; as it can be used as a replacement for providing annual income. Instead the policy pays a tax-free annual income to the beneficiaries living in Hertfordshire, or surrounding counties for the remaining term of the Life insurance policy.