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When
you decide to purchase life insurance we have to choose the appropriate amount
of the sum insured, so that in the event of death, it will secure the necessary
needs of the family. Many people insured in the event of death, will have a sum
around £50-100 000, but for many families this amount is insufficient.
When
determining this amount, we have to consider our current financial needs,
multiply them by the next 12 months and a minimum of 10 years, and we cannot forget
that these needs may change. Most life insurance protection can be likened to a
car liability insurance, if there is an accident the insurer will return the
money in the form of compensation to you and others injured in an accident but
if an accident does not happen, fees are not refunded and the protection risks
in ordinary life insurance is the same.
Let’s say you choose term insurance eg.
For 10 years, and during this time nothing wrong will happen, the policy is
finished and there is no premium returns, but with the insurance with
investment elements you can count on the return of parts of the paid premiums,
but this can highly depend on the situation and times.
