If you want to ensure that your family or partner is supported in the event of your death, you can take out a variety of life insurance policies to provide for them. ITL Global Wealth will help identify the best plan or plans for your individual needs, and advise on building a strategy around the life policy that makes sense for you.
We advise on the following coverage options:
This policy guarantees your dependents a payment, regardless of your date of death. Other types of coverage, meanwhile (see below), only pay out if you die before a certain date.
Term Insurance (Term Life Insurance)
This type of coverage guarantees payment when you die within a specified time period. Term Insurance often costs less than Whole-of-Life Insurance, and is useful if you want to cover dependents only while they are children living at home or in full-time education.
Decreasing-Term Insurance (Mortgage Life Insurance)
One option for individuals purchasing Term Life Insurance is to have the potential payout decrease over time. Typically, this is to reflect decreasing mortgage debts as you continue to pay off your mortgage loans. Without this type of coverage, you could end up over-insured and paying more than necessary. Decreasing-Term Insurance lowers your premiums over time to avoid this issue.
Increasing-Term Insurance combats inflation by having potential payouts increase over time. Your premiums will be higher than decreasing-term and level-term insurance, but you can choose to tie your payout directly with inflation measures such as Consumer Prices Index (CPI) or Retail Prices Index (RPI). You can also arrange simply for the extent of coverage to increase by a fixed percentage each year.
Renewable Term Insurance
This type of policy provides coverage for a fixed period of time, but can be extended when that period ends without the need for additional medical checks. Premiums may increase depending on your age, but if you’ve had any health issues since the original policy was taken out, they will not be reflected in the new price of your policy.
Joint Life Insurance
If you have a partner, you may consider taking out a single Joint Life Insurance policy that will pay out in the event of one of your deaths. This is typically cheaper than paying the premiums of two separate policies, but it is important to understand that joint policies will only pay out upon the first death – after which, the coverage ends. With two separate policies, the second would remain in place even after a claim is made upon the first.
Many companies provide the families of their staff a lump-sum payment if an employee dies while under their employment. (This does not mean the death has to be related to the workplace in any way.) Additionally, members of company pension plans may be entitled to payouts from the pension if an employee dies before retirement.
ITL Global Wealth can help you determine which plan is best for you, and connect you with our team of elite experts. For more information or to get started, call us at 1-800-795-6137.