Don't ever forget how important it is to have enough life insurance, and a possible solution is to get fixed-term life insurance.
But first, why is it so important to have life insurance? Sadly, many people think it's a waste of money because they won't need the money after they die. But life insurance protects the people you leave behind financially if you die.
For instance, if you died tomorrow, would your partner be able to pay the mortgage and other bills with just one salary? Could they still live the same way if you didn't pay them? Or would they have to sell up and move down, which could mean uprooting your children?
They probably wouldn't be able to make ends meet on just one salary, and you wouldn't want them to have to worry about money while they're still upset.
The good news is that life insurance doesn't have to be expensive, and fixed term life insurance can be pretty cheap.
Fixed-term life insurance pays out a lump sum if the insured person (the policyholder) dies during the policy's term. It is a simple and likely the least expensive way to get life insurance.
This is because if the policyholder (or policyholders, if it's a joint life policy) lives past the policy's term, the policy ends and no money is paid out. Since the lump sum payment is only made when the policyholder dies, the premiums for life assurance are less than for some other types of life insurance.
Fixed-term life insurance can also have extra benefits, like paying out a lump sum if a terminal illness like cancer is found during the policy's term.
Usually, the term is set to match your personal financial situation. For example, if you still have 20 years left on your mortgage, you need life insurance to cover you at least until your mortgage is paid off. Or, you might want it to keep going until you retire.
As with any insurance, you should shop around to find the best deal for you. You might be surprised at how much prices can vary from one insurer to another even though they all offer the same level of coverage and benefits.
Lastly, if you're not sure about any part of the coverage you've chosen, talk to your life insurance company or get advice from a financial expert.
