Why have life insurance?

Life insurance is in effect a process that will enable people to pay off debts and help family or friends when they die.  It is a difficult time when a loved one passes away and the financial burden can be hard to cope with too; so in this case a life insurance policy can be taken out to ease the stress on family and friends after you die.

When life insurance cover is taken out, an agreed sum of money is negotiated between you and the insurance provider in an event of your death. So basically if you die the insurance company will pay out money which was decided upon when the policy was taken out. 

Generally, you will pay monthly instalments for the policy and these usually vary in amount.  Below we have listed the main factors that determine the price of a life insurance policy and in turn the monthly premiums:

• Occupation
• Sum insured for
• Policy duration
• Age
• Gender
• Health status
• Smoking

The main reasons to take out life insurance are listed below:

• Make sure family and friends do not suffer financially when you have died
• Paying off the mortgage
• Education expenditure – helping your kids during their academic life after you pass away
• All other aspects where you are the main contributor towards the funding for the family

It is important to search for the appropriate life insurance for your circumstance and the policy that will cover your family adequately once you are gone.

Life Insurance Guide
Why have life insurance Types of life insurance Where can I apply for life insurance? Cutting the cost of life insurance	"Life insurance is in effect a process that will enable people to pay off debts and help family or friends when they die."