READER QUESTION

Q What is a life insurance policy and what’s the best criteria to work out if I need it?

A

Life insurance pays out either a lump sum or regular payments to your beneficiaries if you pass away so it’s important to consider it if you have anyone depending on you financially, such as a partner and children. However, our research shows just 32% of people have it in place,’ says Lee Clark, financial planner at Brewin Dolphin (brewin.co.uk). ‘There are factors you’ll need to consider, like how much cover do you need and how long you’ll want the policy to last for. So it’s important to do your research and get professional advice.’