A Guide To Life Insurance - Pure Protection Policies - Protection ....


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Pure Protection Policies - Protection...

The need for protection comes with dependants, and for most people exists from the time of marriage through to the time when children become independent, continuing thereafter in the case of a dependent wife (or husband) at a reduced level.

Prior to marriage and in the early family years, saving needs are usually short-term, for example towards buying a house or building up a business. Life insurance may be useful but other methods of saving are often more appropriate. It is from middle age onwards that the longer-term saving need, to provide capital for retirement, really comes to the fore.

To sacrifice current income for long-term saving (especially at the expense of protection) has little to recommend it to the young married couple.

A point that is often made by websites is that starting a long-term savings policy when young and single provides a good start and a financial asset that the family can later draw on.

In theory, this is all very well, but if a young unmarried man commits himself to paying £2110 or £220 a month on a long-term savings policy, he may not be able to afford to keep up the premiums when he has married and has children and a mortgage to support.

At this point the need for protective cover is paramount, and the long-term policy will provide little immediate cover. So he might be forced by circumstances into terminating the policy, which, as we shall see later, will mean a poor return on the money invested.

There are a few policies which can be used to accumulate capital over short periods, but the majority of investment-oriented policies are designed for the long term and should be taken out only if one is reasonably confident of being able to keep up the premiums.

2015 - Guide To Life Insurance - Find out more ....

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Though it is not really life insurance, permanent health insurance is issued by many life insurance companies and is, unlike fire or accident insurance, a long-term contract.
In return for an annual premium the company guarantees to pay a specified annual income to the policyholder if he or she is unable to work as a result of illness or disablement.
The contract runs to retirement age, normally 65 for men and 60 for women, though if earlier retirement is intended the term may be shortened......... see: click here for Pure Protection Policies Premiums


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