Life insurance: What is it and why is it important?

We all know life insurance is probably a good thing to have but how many of us actually really understand what it is? In this article, Acumen gets to the heart of the matter and explains exactly why this financial safety net is essential for looking after your family’s future.

What is life insurance?

Life insurance protection underpins good financial planning. Put simply, it ensures the right amount of money will reach the right people, at the right time, if the worst was to happen to you.

There are many different life insurance options out there, such as level term, renewable term, increasing or decreasing term, mortgage protection and family income benefit.

There are also other types of insurances that you might require, such as health insurance, critical illness insurances, income protection insurance, medical insurance and unemployment insurance.

Why is life insurance important?

Life insurance puts money in the hands of those who need it when a person dies. There are many reasons why this money might be needed, including:

  • Paying off a mortgage (or other loan) if a borrower dies.
  • Protecting a family against the early death of a spouse, partner or parent, particularly important for people with financial responsibility for children.
  • Paying for a funeral.
  • Paying inheritance tax (IHT).
  • Protecting a business against the financial consequences of the loss of its owner or a key employee.

Acumen’s account on matters

“If your income would stop upon your death and you have people who depend on you financially, you should have life insurance cover,” says Acumen Managing Director and pensions specialist, Angela Maher.

If you live with a spouse or partner and their earnings would also stop at death, they too should have insurance cover. However life assurance isn’t an absolute necessity for everyone and for some it may not be required at all.

“Acumen can make sure you are covered for all the eventualities you need at the most cost-effective price. We tailor the life insurance policy to you,” she adds.

To discuss your life insurance plans with one of our dedicated team please contact us today on 0151 520 4353 or email [email protected].

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