Is life insurance worth it?

Life insurance provides peace of mind in that it pays out a lump sum to your chosen beneficiaries in the event of your death. It’s a good way to provide financially for loved ones.

Frequently asked questions

Term life insurance is designed to pay out a lump sum if you die during the term of your life insurance policy.

Mortgage life insurance is typically bought to cover a mortgage, so in the event of your death your loved ones can pay off your outstanding mortgage. It’s also called decreasing term life insurance. The amount you are covered for decreases over the term of your policy, similar to the way a repayment mortgage decreases.

Death-in-service is an employee benefit that pays out a tax-free lump sum if you are employed by the company at the time of your death. Payouts are linked to your salary – not how much money your family might need in your absence. Death in service only counts if you continue working for the same employer. Once you leave, the benefit comes to an end. Your death in service payment may not be enough to cover all outstanding debts, so you may want to think about having life insurance as well.

Life insurance can protect mortgage payments, debts, ongoing costs and even helps pay towards funeral expenses. A life insurance policy can help to make sure all debts are fully cleared on death. You can have peace of mind knowing your family is financially secure.

To claim life insurance after someone dies, the beneficiary should contact the life insurance provider directly. You will need to provide a death certificate and may need other documentation when making the claim. The claims process and length of time to pay may vary between providers.

No, you can’t. You need their permission and most insurers would want to see a medical report from the insured person.

Term life insurance is designed to pay out a lump sum if you die during the term of your life insurance policy.

Mortgage life insurance is typically bought to cover a mortgage, so in the event of your death your loved ones can pay off your outstanding mortgage. It’s also called decreasing term life insurance. The amount you are covered for decreases over the term of your policy, similar to the way a repayment mortgage decreases.

Death-in-service is an employee benefit that pays out a tax-free lump sum if you are employed by the company at the time of your death. Payouts are linked to your salary – not how much money your family might need in your absence. Death in service only counts if you continue working for the same employer. Once you leave, the benefit comes to an end. Your death in service payment may not be enough to cover all outstanding debts, so you may want to think about having life insurance as well.

Life insurance can protect mortgage payments, debts, ongoing costs and even helps pay towards funeral expenses. A life insurance policy can help to make sure all debts are fully cleared on death. You can have peace of mind knowing your family is financially secure.

To claim life insurance after someone dies, the beneficiary should contact the life insurance provider directly. You will need to provide a death certificate and may need other documentation when making the claim. The claims process and length of time to pay may vary between providers.

No, you can’t. You need their permission and most insurers would want to see a medical report from the insured person.