At Balanced, we believe it’s important you don’t buy life insurance because that’s "what everybody does". We will talk you through all your options, explain the different types of cover and what they do. We will also provide a personalised risk profile to help you decide what is important to you and help you prioritise your needs and budget.
Do I need Life Insurance?
Life Cover can be tailored to match your circumstances. If you have a partner or a family then you will most likely want some form of life cover to provide for your loved ones in the event of death. You can cover your existing mortgage so that it is completely paid off, you can cover other living expenses or a combination of both, to suit your requirements. You can have individual cover or joint cover.
Life Cover insurance pays out a lump sum on death, the policy can be put into trust to make sure the money is looked after in the way the you intended it to when you set the policy up. You can opt for a monthly payment instead of a lump sum, this type of policy is called Family Income Benefit which is covered on another page of this website.
Different types of Life Insurance
Decreasing Term Life Policies
This type of policy is designed to cover a repayment mortgage, as the mortgage is paid each month the mortgage balance reduces, a Decreasing Term policy aims to cover at least the balance in the event of death.
Level Term Life Policies
This type of policy is designed to pay out a lump sum figure, the figure that is paid out does not change throughout the term of the policy. This could be used for someone who has an Interest Only mortgage where the outstanding mortgage balance remains the same throughout the policy term. The policy could also be used to make a lump sum payment to its beneficiaries which could be used to live a comfortable lifestyle due to the loss of income from the death of the policy holder.
Whole of Life Policies
Decreasing & Level Term policies run for a set period of time, a Whole of Life policy will pay out no matter when you die as it keeps running without any set term.
Please note: You must keep up your premium payments on a policy to avoid the policy being cancelled.