LIFE INSURANCE

Life insurance for young families is a must, as the death of one family member can mean the inability to pay the mortgage payments or raise the children as a single wage earner. Protect your family today.

There is a saying “it’s better to have it and not need it, than to need it and not have it” This saying can confirm that for many people life insurance is just another necessary evil. However we tend to insure our home and possessions as a matter of course, despite the fact that statistics indicate that our chances of dying before age 65 are in fact greater than the chances of our home being damaged by fire!

The consequences of premature death can be devastating for many, but to a family with young children and a mortgage – those consequences can be particularly devastating. On the sudden death of a parent there is still that mortgage to be paid and possibly young children to be raised - and with just the one income rather than two as previously!

So, in its basic form life insurance will provide a lump sum payment on the death of the life insured in exchange for the payment of premiums. The sum insured is usually calculated on the basis of those liabilities that would become a real burden on sudden death – the mortgage and perhaps the ability to find income to allow a parent to stay at home and care for children until they’re well into their school years.

A premium is calculated on the amount of the sum to be insured, our insured’s age, occupation and health history, and any activities that might be considered a risk above the normal risks we take in the course of our daily living.

The life insurance company is committing to the payment of a lump sum on the death of our life insured, and of course as it doesn’t know when that death might occur or how many premiums might have been paid, it will want to know what sorts of things will increase the risk of that person dying prematurely.

Given the risk that our life insurance company is taking, the insurance application will usually be full of questions on those things mentioned above. For this reason at Thompson McNeill we like to guide our clients through the process and use our knowledge and experience to answer any difficult questions on the way!