Just about everyone has wondered what would happen to their loved ones emotionally and financially if they happened to died prematurely, with most people just concerned that their family is taking care of in their absence. Whether it is worrying about whether or not children have enough cash to get through higher education, or concern about a wife or husband having enough to manage a mortgage, a life insurance Northern Ireland policy can help take away the concern.
Many Northern Ireland and UK-wide companies will supply cover, either paying out a lump sum in the event of someone’s death to a named person or persons, or providing a person or people of your choice with a series of smaller payouts. The idea is to make sure those who are left behind do not have to unduly worry about money after you are gone.
All this might seem depressing and even discussing it might seem like ‘tempting fate’ to some people, but the peace of mind cover can bring can be worth the hassle of itself. Many companies are also quite flexible when it comes to life insurance, while some premium costs and pay out amounts will be quite clear and immovable, some firms will chop and change premiums in exchange for different levels of pay out if a claim ever needs to be made.
One of the most common types of life insurance cover involves replacement of someone’s salary. This is a policy normally taken out by the main breadwinner of a family and takes their net wages, plus the number of years it may be needed after the death, to produce an agreed payout amount. The cash can arrive as a lump sum after a claim, or can be paid to recipients in regular instalments depending on the type of policy you take out.
Some policies offer help for mortgage repayments, with things like level term policies involving fixed premiums and a lump sum after a successful claim.
Some things to consider include whether or not the policy will still be relevant in a few years’ time. Cover which runs for years at a time may not provide enough if a claim is needed 10 or 15 years down the line – what is adequate when the policy is taken out and what is adequate when the policy is claimed upon may differ, and it is important to ask your insurer if anything is in place to cater for this. Some policies will actually provide a mechanism whereby the payout is linked to the retail price index and increases accordingly.
Most people choose a life insurance Northern Ireland policy naming a spouse or their children, or both, as beneficiaries. People who are not married or who do not have children can normally also name other family members instead. Some people may even prefer to name a business partner to ensure they will be able to keep going in the event of an unforeseen tragedy.
Author’s note – the correct name for this product is life assurance Northern Ireland, however “life insurance” has become commonly used today.