Life Insurance Pay-Outs And How To Use Them
9th June, 2014
Life insurance is a very important product which offers financial assistance to grieving families in times of need; few people, however, know how to use the money paid out from an insurance claim. Life insurance pay-outs can be used for almost anything including mortgage repayments, credit card debts, and to clear loans. The average UK family has these small to larger sized debts and life insurance compensation is the ideal way in which to alleviate the financial stresses associated with a loved one passing.
Typical life insurance cover is currently £250,000 and this is often enough to prevent loved ones losing their home or needing to downsize. However many people choose to safeguard loved ones by opting for a higher cover amount; these additional funds are intended for university fees, down-payments, or even to cover their own funeral costs.
Many of the leading life insurance companies will offer 'package deals' by way of additional critical illness cover, income protection or private medical insurance; the insurers specialist advisers often negate the need for potential customers to look online and compare life insurance quotes when all the information they require is under one roof.
Many people still believe that life insurance solely benefits a spouse or live-in partner when in fact immediate family members and other relatives can hugely benefit from these policies. Such myths surrounding life insurance may explain why only a quarter of UK adults have any type of insurance cover at all.