Most people prefer to avoid thinking about the consequences of a death in the family.
The emotional strain is bad enough but it is also compounded by the effect this can have on a family s financial situation when the deceased is actually the main earner for the family. Planning ahead and taking a few minutes to address this issue can ensure that your family is not going to suffer a double blow if the worst happens. The most common reason for the establishment of a policy is to ensure that your family s standard of living is not going to plummet in the event of your death, because if you are bringing in a salary each year this would be lost in the event of your untimely death. This may result in your family having to cut back significantly in the way they spend their money and it could prevent your children having the kind of upbringing that you had wanted for them. If you wish to cover your mortgage then you will probably require a decreasing term assurance, which automatically reduces the level of cover as the outstanding debt reduces.