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Guide to Life Insurance
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What is Life Insurance Cover?
Life insurance, also known as Life assurance, is an insurance policy which pays out to the beneficiary when the insured person passes away. Although it is not compulsory, it is a wise decision to have for anyone who is relied upon for financial support.
In the short term, your loved ones may need to adjust to a new lifestyle, covered by the benefit, as well as to pay for funeral costs, outstanding debts, mortgages etc. In the long term it could pay for the care and maintenance of an elderly parent or a disabled child. It could also cover university expenses and generally keep your loved ones living to the standards they had become accustomed to before your death.
For many people the first time that they come across life insurance cover is when applying for a mortgage. Most mortgage providers insist that the borrower is insured to cover the remainder of the loan should anything go wrong.
In business, life insurance gives you the means to ensure that a key person could be replaced by covering the costs of recruiting and training a replacement. It could also provide collateral for business loans and fund buy/sales agreements, to keep the company’s equity in the right hands.
Life insurance is one of the purest forms of insurance, in that ideally, you really would not want to have to claim, as to claim means that something bad has happened.
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