What Is Life Insurance? And Do You Need It?

life, life insurance

It’s okay to admit you haven’t a clue about life insurance – what it is, what it’s for and even why on earth you’d need to think about it. But, to that end, we always think about our family. Yes, sometimes we may want to disown them (sorry, mum) but we adore them really. And because we love them so, we want the best for them; we want to make sure they’re looked after no matter what may lie around the corner. This can range from the small things, like wrapping them up in a hat and scarf come winter, or the bigger things, like ensuring you have adequate Life Insurance – yes that thing you know nothing about. It’s actually a very useful thing to have – and the family will be grateful later (even if they’ve spent a lot of time saying otherwise in the meantime!)

If you’re unsure as to what exactly Life Insurance is and why AA’s cover is so beneficial and important for your family, this guide should help:

What is Life Insurance?

Life Insurance is an answer to a question you may not want to ask yourself: How will my spouse/partner, children or relatives manage financially if I die unexpectedly? It’s used to replace your income for your family should you die. Yes, it sounds morbid but this lump sum – it’s always paid out in one go rather than week-by-week or month-to-month – is your family’s security blanket, if you will. It replaces your lost wages, helping to cover, for example, ever-growing childcare costs, pay back loans or college fees – it’s money left for them to use so that life may continue without a mountain of debt to be paid and helps them live day-to-day easily.

Who Should Have Life Insurance?

Well, anyone who wants to ensure their family doesn’t have to worry about money or get snowed under by living costs – especially if you have young kids – when they’re no longer around.

Are There Different Types of Life Insurance Protection I Can Get? 

Yes. You can get three types of cover with the AA, depending on what works for you. Single life cover where one person – for example, your life – is covered and should you die, the money goes to the person of your choosing. Joint Life Cover is taken out by two people – so maybe you and your partner – but paid out to whoever you choose should one of you one pass away sooner than expected or very suddenly. Finally, Dual Life Cover, which can be taken out by two people – so again, you and your partner – but with an amount of money paid out should one of you pass away and a second amount paid out should the other also pass away. This might be especially helpful if you have many children or a large extended family.

Why Do I Need Life Insurance?

We all worry about the future; what might happen to our family if something unexpected happens. We’re human; we get sick and that crazy thing called life can throw us a curveball we least expect – but at least with Life Insurance we won’t have to worry about those we love.

What Are the Benefits of Taking Out Life Insurance With The AA?

With Life Insurance, your loved ones will be taken care of when it comes to money and living comfortably. How would your family pay bills without an income? How would they maintain a standard of living if a tragedy occurred that left them without both parents, for example, very suddenly? You need Life Insurance because it provides; it gives your family an income in the event that you’re unable to provide it for them yourself.

What About Anything Extra I Might Need?

The good news is that you can also add Specified Illness Cover or Accelerated Cover to your insurance policy with the AA. So, what if you get sick, can’t work and are unable to bring in an income? Or pay for your treatments to get better? The AA’s Specified Illness Cover is there to cover you in the event that your health takes a turn for the worst. If you’re diagnosed with any of 66 conditions which are covered under the AA’s policy, you and your family will get a lump sum to help pay any bills or medical costs as you recover.

There are two ways you can take out this Specified Illness Cover – as Standalone Cover or as an Accelerated plan.

Standalone Cover means it’s completely independent of any Life Cover you may take out – you can have it as a separate policy, so you’d be entitled to a payout of Life Insurance and Specified Illness separately.

Accelerated Cover is Life Insurance with an element of Specified Illness Cover included. Under this cover, should an early diagnosis of a specified illness be given, the plan will pay out the amount under the specified illness benefit.

So, put your mind at ease; with AA’s Life Insurance cover you and your family will be protected and provided for if life takes an unexpected turn – even one you weren’t anticipating. It’s safe, secure and it will help look after them, even if something should happen to you.