For example, it is likely that you have a mortgage, and you will have signed an agreement when you took that mortgage out saying that if you were unable to keep up your repayments, the whole property would be repossessed by the mortgage lender. Thus if you passed away, and you were the main breadwinner in your family, it is possible that they would have nowhere to live. If you had outstanding debts to repay, such as hire purchase commitments, car finance, and credit card balances, there may not be a way of discharging these obligations and your estate – i.e. your family – would be liable.

Thankfully we can all protect ourselves by taking out a life insurance policy with someone like Legal & General. There are lots of different options to consider, but life insurance policies fall into two main categories – level term and decreasing term. If your priority is to ensure all financial commitments such as mortgage and other debts were repaid on your unexpected death, thus offering a good degree of financial security for your family, you should opt for a level term policy. This pays out a fixed amount, equal to your initial mortgage amount. So if you passed away towards the end of the insurance term, there would be more money available to repay other debts. Obviously, if you died near the start of your policy term, it is possible that the payout might not be sufficient to cover these.

If you preferred a lower cost option, but still retain peace of mind that your mortgage would be repaid, you should go for decreasing term life insurance, where the sum insured reflects the balance outstanding on your mortgage. A good place to start researching the range of life insurance policies available is the Legal & General website itself, where you will also find links to policy information and details of who to contact if you have any questions. There is also the opportunity to take out one of their high quality insurance products when you have made your decision.

Because your mortgage is what keeps the roof over your head, it makes good sense to protect it in case of unexpected events – this could be losing your job, becoming seriously ill and unable to work, or even passing away. Protecting your mortgage means that you and your loved ones still have somewhere to live, in the family home you have worked hard to provide them with. Certain life insurance policies have clauses built in to cover such eventualities, and it is best to consider what your priorities are. Your financial adviser will then be able to propose the best one for you.

You will probably choose between level term and decreasing term insurance. Level term works by paying a lump sum to your estate if you die during the time you are insured, and this amount will typically equal your original mortgage amount. So depending on the amount you have yet to repay, there may be some cash left over to meet obligations like outstanding credit cards and funeral expenses etc.

Decreasing term insurance pays an amount out that decreases over time, reflecting the amount you still owe on your mortgage. It is cheaper than level term, and still provides the primary aim of repaying your mortgage, but if you have other debts it may not be the best option for you.

The life insurance market is extremely competitive at present, and it is a very good time to get a good deal. Given the global credit crunch and increased cost of living for us all, taking out a life insurance policy would make perfect sense at this time of great uncertainty – one less thing to worry about and a highly sensible investment.

Life Insurance

This is a protective investment, which can look after you, your loved ones and the life you leave behind should anything happen to you. There are two basic types: the protective and the investment type.  One pays out after your death and the other acts as more of an investment and can be cashed at any point. You need to study your living situation and consider how much you want to pay and for what you need to be covered for. The protective type can only be cashed if you die within a specific time.   In comparison, an investment type can be taken out and cashed at any point in your lifetime, helping to pay off debts. It’s advisable to search around online and compare quotes.  A good place to start is at Asda’s finance department, where you can get a life insurance quote online.

Car Insurance

If you have a car, then you’ll want to look after it and insuring it is the wisest step to take.  There should be three essential services you look for in your car insurance. They should offer a repair service for all minor incidents, must-have coverage for any major accidents and roadside assistance should you breakdown.   It’s worth investing in, because it a can also provide the backup you might need for legal problems off the road. It’s an extra-cost, but there are many providers online now, which has helped to significantly cut prices.

Home Insurance

Home insurance can be purchased to cover the contents and structure of your home.  Although it is an added expense that many people try to avoid until they purchase a property, it is essential to safeguard against natural disasters, such as flood.  It also protects the contents of your home from burglary and the damage that results from natural disasters.  There are ways to save money on a home insurance premium, for example, you can fit a recognised burglar alarm, or, if you have the benefit of being over 50 then you can save up to a third on home insurance with RIAS.  The older you get the more valuable contents you will accumulate so this could be a good option.