London, United Kingdom (PressExposure) February 05, 2009 -- Given the potentially disastrous results of not been able to provide for loved ones in the event of death it is an even more potent reason to get life cover in a credit crunch not avoid it or be fearful of the cost.
Peter Curtis of the London insurance broker IDFM says: "Assuming that the mortgage has been fully covered, a capital sum would be paid by the insurer and it would then be up to the survivor to clear the loan in full or in part. The problem is that, even without a mortgage, there will be substantial costs in bringing up a family. Given the choice, it is likely that the survivor would want to ensure that their need to work did not affect their children's future and that they could manage the two things without the pressure of juggling the household finances."
The solution to this problem is Family Income Benefit. This is a simple and cheap form of life cover that provides an annual payment instead of a single capital sum. The idea is that this would fully or partially replace the salary lost in the event of death to the end of a specific term, often selected to the point at which the children would be independent.
Peter Curtis from City insurance broker IDFM [http://www.idfmcity.co.uk/london_insurance_services.php] says: "If a policy was taken out for say, Â£20,000 a year benefit for 18 years and one of the policyholders died in year 4, the survivor could expect to receive the selected annual benefit until the end of the policy term. As the liability to the insurer decreases as the years go by, this type of insurance can be extremely affordable. For example, a 30 year old non smoking couple effecting a policy for 18 years, paying a benefit of Â£20,000 per year on death would cost around Â£14.91/mth per month. When you consider that this policy would ease the financial burden of the survivor it is little cost when compared with an average household budget."
If you are not sure whether your life assurance would adequately provide for your family in the event of your death make sure that you consult your insurance broker to see what your options are. Ensure that you deal with an adviser that has access to a wide range of providers to ensure you reach the very best cover and the most competitive premiums. See http://www.idfmcity.co.uk for further details.