Martin Lewis’ Guide to Life Insurance – Different Types | This Morning

this week we’re talking about something that many people find uncomfortable to talk about and that is life insurance so Martin where should we begin tonight what tonight today this morning is a hell of a Monday I know and please excuse me I keep coughing I’m so sorry if it’s winding in irritating and what is life insurance first of all okay so life insurance is an insurance policy that pays out if somebody dies and the reason it’s important is it’s there primarily to protect your loved ones from a lack of income that would come especially if the main breadwinner dies and it’s worth understanding that you know if you look at a typical school class one of those children will lose a parent before they were 18 one in twenty nine well I was one of them so which is why I’m so passionate about this so it’s something that parents do need to think about no one likes talking No well let’s just get over your sensitivities and deal with it you know not to you to to everybody watching because it’s important to think about so of course if a parent dies there’s going to be grief there’s going to be misery it’s can be incredibly difficult to deal with but there can also be financial consequences and you have to analyze what those consequences would be what would the financial impact be on your family and some people might think that’s a weird thing to be talking about but on top of all that grief if suddenly you can’t pay your bills and in the midst of the time when you’re struggling to deal with life you’re also struggling to deal with money it compounds the problems that’s why this is so important now there are lots of different types of life insurance and I’m going to keep it pretty simple today so maybe even over simplify but just to put it in concept there’s level term insurance which pays a set amount if you die within a sector there’s mortgage decreasing term insurance that is effectively there to pay your mortgage so the amount it pays out gets lower as as you pay your mortgage off again within the set term this whole of life insurance which is a policy really that a mitigate inheritance tax there are also life insurance investments that are something very different I’m going to focus on level term insurance today which is the prime one the cheapest one for protecting the family if you die so let me give you an idea you pay a monthly premium and you’ll get a policy that was something like payout 200,000 pounds if I die within the next 20 years that’s how it would work obviously you can change the amount and you can change the length of time now the fact that it only pays out on death actually means there’s generally not much argument here and lots of other insurance you have an argument cyber claims but if someone dies their dad and if they die within a set term it pays out a fixed amount again no argument so in many ways the cheaper as long as it’s a reputable company with a better view in pay less two hundred thousand pounds within 20 years is two hundred thousand pounds within twenty years there lots of variance inflation-linked but we’ll just keep it very simple and that’s level term insurance in or not assurance in enough nutshell

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