Many people will ask a wide variety of questions about life insurance, many wanting to know whether they should take out life insurance or not. Many of those people often will be told to seek independent financial advice, there they will then have a financial adviser who would be able to discuss with them different types of life insurance and which ones will suit them best.

Here are just 5 of those many questions that many people will ask :

What does life insurance cover?

Life insurance basically pays out on death.Its there to help provide for your loved ones when they can no longer reply on your income. What many people will often use it for will be to clear any outstanding debts, such as a mortgage or to cover everyday expenses or many people will use it towards funeral costs.

Should I bother with life insurance?

If you are single with no one depending on you, you may not have to worry to much about life insurance however that does not mean to say it still is not a good idea to have it. But if you have a partner who would struggle to cope financially after your death, or if you have children, then life insurance can offer a financial lifeline.

What is term insurance?

Term insurance is the most common type of life insurance and pays out only if you die within the term. For example, you might take out a 25-year policy so your family could claim if you were to die within 25 years. Of course, if you died later, there would be no payout.

Can I buy life insurance that will pay out whenever I die?

Yes. If you want to be confident that your family will be able to claim no matter when you die, you can take out whole of life assurance,you are not then restricted by any policy term. Its important to know that you should consider that whole life assurance is usually more expensive than term insurance.

How much life insurance do I need?

The amount of cover sometimes known as the ‘sum insured’ will depend upon your personal circumstances. An example being, if you have a big mortgage and a large family, you are more than likely going to need more cover than someone who has a small home loan and one child.

How much does life insurance cost?

The cost of life insurance will vary according to the type of policy and the size of the sum insured. Its important to know that insurers will also take into account the risk of a claim when setting up life insurance.So an example would be if your more of an older person your life insurance will be more expensive or if your currently in a poor state of health you could be expected as well to pay a higher amount for your life insurance.

Your occupation, hobbies, and other lifestyle factors such as your weight and fitness also help to determine the cost of cover. Insurers even look at your postcode as people in some areas of the country are statistically more likely to claim.

If you would like some independent financial advice on life insurance you are looking to take out or on any you have already , we at Hutt Professional have adviser with many years of experience who would be more than happy to help. If you are located in Leamington Spa or surrounding areas please do not hesitate to contact us.

source:http://www.moneysupermarket.com/life-insurance/faqs/ 03/02/2015