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Life Insurance is an absolute must!

Thinking about taking out a Life Insurance policy? Despite it being completely optional, it really is something you should do! There's no greater peace of mind than knowing your nearest and dearest will be covered in the event of anything happening to you!

If you're still caught in two minds, let us try clear things up for you slightly with our brief guide to Life Insurance. Firstly, it's worth noting that there are two types of Life Insurance. You can either invest in term life insurance, or whole life insurance.

A term policy can cover a specific period of time. Generally you will have from one year to 30 years covered. If the insured dies during this period, the stated value of the policy will be paid to a beneficiary. If you are still alive at the end of the term, you receive no money back.

A whole life policy will protect you from the time it's taken out until the day you die. It is also likely to include an investment for you in bonds, money markets or stocks. As the amount you have invested in it grows, you can even borrow against it if you're running short on cash.

As a rule of thumb, it's worth taking out a policy that's five to ten times your annual salary. This will ensure all your dependents are looked after in the event of an accident. It's also worth noting that a policy is only as good as the company who provides it. Make sure and take out your policy with a company that has a proven track record of reliability over an extended period of time.

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