This is a guest post
Life insurance is an essential tool with which you can secure your family’s financial future.
There are many different types of policies out there, with varying degrees of cover and a whole raft of different purposes.
This type of policy is designed to release the insured amount to the policyholder in either monthly or annual instalments once he or she reaches a pre-agreed age. It is very useful, insofar as it provides a regular, reliable income at a time when the policyholder is most often no longer working. Premiums can either be paid over a period of time in the usual fashion, or the policyholder may decide to pay a large lump sum at the outset.
Sinking Fund Policy
Rather like an education or marriage annuity, a Sinking Fund Policy is set up to provide for a specific, known expense in the future. For example, such a policy might be set up to provide sufficient funds to replace a car, or to repay a debt which will become due on a known future date. Sinking Fund Policies are commonly used by landlords or property managers to offset costs associated with their property portfolio.
A Multipurpose Policy does exactly what it says on the tin. It is a flexible form of policy that covers a lot of bases and is very useful for protecting yourself and your family under the umbrella of a single policy. Using a Multipurpose Policy allows you to provide for yourself in old age, provide an income for your family in the event of your premature death, and provide for the education or marriage of your children. When the policy matures, the policyholder may receive a lump sum in cash or as a monthly pension. In the event that the policyholder should die prematurely, an increased sum becomes payable to his or her beneficiaries.
There is a wide variety of cover available, and you should always seek expert advice before you commit yourself to a new plan. Why not search for a life insurance calculator online to see which policy would be best for you? One that you might find particularly useful can be found on the lifeinsurance.org.uk website. A spokesperson for the website said:” Long term dedication to health and fitness is a sure fire way to live a more fruitful life and will leave your family at less risk of losing someone they love too early.”
Image by Daniel Y. Go