LIFE INSURANCE AND THE CREDIT CRUNCH

With so much emphasis in the media about the ongoing credit crunch, many of us will more than likely be worried about some aspect of our financial portfolio. Consumers face an uphill struggle to clear their bills, credit cards and mortgage payments, but many of us could have unknowingly overlooked policies that will help our families in the event of unexpected circumstances.

Life insurance is one of the most important insurance policies you can have available to you, for it offers the opportunity for some financial aid for your family should something serious happen to you. Policies can range from critical illness cover, which offer cover in the event of a debilitating condition, to those which offer a payment to your family upon death.
There are many different types of life insurance policy – from temporary term assurance to whole-life policies – and it is vital that you research these before you sign up to a policy. There are also joint policies available that will pay out to either should something happen to their partner, however it can sometimes be cheaper to purchase two separate policies.

Some policies, including critical illness cover, are designed to pay out in instalments and provide families with the opportunity to afford vital medical care, help support them through the difficult process of rehabilitation and also help to pay off any accumulated debts by covering any lost income due to being out of work.

But in these difficult times, many are likely to shy away from securing life assurance policies for themselves in order to concentrate on more important financial matters. Having a policy in place can be a vital step in ensuring that your family will receive a degree of support should something happen to you.

Research is key when deciding on a policy, so it’s best to shop around for the best deal. If you are employed, it can be worth checking if you are entitled to some life insurance through the company you work for. Take the time to have a re-read over your contracts and check the terms and conditions to see if you’re covered.

Consulting a financial adviser can be beneficial if you’re unsure of what you could potentially be signing up for. Budgeting for a life insurance policy can be beneficial for yourself and your family as it can help to bring peace of mind and ensure that you and those closest to you are covered should the unexpected happen.

SOURCE
http://www.moneysupermarket.com/