Life Insurance Explained

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Life insurance comes in a variety of packages to suit peoples needs at the stage of life they are at. As it’s based on “death”, it is normally to manage dependents.

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The basis is therefore to cover funeral expenses, any existing mortgage or loans and provide enough “living expense” finance for one’s dependants for a period of time as a minimum.

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A “whole-of-life” insurance policy, is a set premium for one’s entire life. A lump sum is thereafter payable on death.

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Term life insurance policies are exactly the same but “capped” with a period of time. For example “20 years”. A number of other products and benefits may be too attached to these types of policies: terminal illness, funeral costs, children’s funeral costs, and many others. There are many innovative ways to provide for every eventuality with a variety of different options.