The death of the family’s breadwinner can mean financially difficult times for those who are left behind. If they are the only wage earner in the household then it will mean living without an income and as we all know this is nigh on impossible. There are plenty of benefits available from the government but these aren’t guaranteed so the best option is to make financial provisions that will help with the cost of living should the worst happen.

The best way to protect your family finances following your death is to take out an adequate life assurance policy while still alive and well. There are two main types available and the one you choose will depend on your individual circumstances.

Term Assurance

Term assurance is taken out for a set number of years, normally the same number as your mortgage runs for. You pay monthly instalments for the term of the policy and should you die before the end of the term then your family receives a lump sum. The amount they receive again depends on the individual policy but it is normally calculated so that it covers the mortgage on your home and leaves a little bit besides.

This type of life assurance is normally used simply to protect the family home i.e. in the event of an early death the outstanding mortgage is paid off. Once the policy ends then that is that, you don’t receive any money back.

Whole of Life Assurance

If you don’t have a mortgage to pay off, or a similar large financial commitment then whole of life assurance offers better protection. These policies can be set up so that your family receives either a lump sum on your death or they receive a regular income which is probably what they’ll require should the main breadwinner pass away. Having a regular income that is similar in value to your earnings helps to make the transition easier and it means that the regular bills will still be paid.

Whole of life assurance does have to be paid every month though as missed payments will end the policy. Should you decide to end the policy then you’ll receive nothing back but as this type of assurance is perfect for safeguarding the family finances why would you want to finish it?

Life assurance of some sort is essential if you have a family to support and you’re the main breadwinner. An unexpected death can cause all manner of financial problems so invest in a policy now and protect your family in the future.