

| Life Assurance is used primarily to provide money for people who depend on you financially. The following are areas that may require the use of life insurance. Mortgage Protection: If the house is to be lived in by your partner or children then it is normal practice to ensure that the mortgage is cleared on death. Money for dependants: If you have small children then money will help provide for them, perhaps by allowing the surviving partner to stay at home or work part time for some years. Business debts: Banks and creditors get worried when key people die. Credit lines get shortened or even pulled, often with fatal consequences for the business. If you are a key person your business could insure you to provide cash flow to settle all debts and recruit a new person. Business Partners and Co-directors: If you die you hope that your colleagues will pay a fair value for your share of the business, but they can only do this if the funds are available. Life assurance can be used to provide this. |