Life Insurance 101: What you need to know

What is life insurance?

Life insurance pays out a lump sum of money on the death of the life insured.

How does life insurance work?

There are three parts to your policy:

  1. The insurance company with whom you have the policy, the life insured on whose death the money gets paid out, and the policy owner who is the recipient of the funds.
  2. If the life insured and the policy owner are the same, then the funds get paid out to the life insured’s estate.
  3. Therefore, it’s important to ensure that you have an up-to-date will.

Why life insurance?

Your life insurance policy can create an instant estate for your loved ones.

Life insurance can be used to pay for your funeral expenses, legal fees, pay off debt, pay for children’s education, and leave money behind for loved ones or anything else that’s important for you.

If you would like to review your current policies or would like to have a chat to see how life insurance can benefit you, call Lifestyle Solutions on 0800 477 488 , email us at, or send us a message.

Our team of personal insurance specialists is looking forward to hearing from you.

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