Life insurance is one of those touchy subjects that we don’t like to think about. After all, none of us want to consider a time when we’re no longer around to enjoy life with our loved ones.
However, if you want your loved ones to be secure when you’re gone, life insurance is an incredibly important investment.
Some of us may consider life insurance to be an unnecessary expense, but in actuality, life insurance provides a range of benefits, with most plans being incredibly affordable. The cost of a policy depends on several factors, such as health, lifestyle and age.
So, affordability aside, why should you consider taking out a life insurance policy:
You’re Buying a Home
Many of us who think ourselves as debt-free are usually forgetting about our mortgage, which is a massive loan. When we die, this loan doesn’t disappear, instead it will fall to the loved one that you’re leaving your home to.
To help your loved one pay these mortgage payments, a life insurance policy is essential. Which makes it surprising then that 42% mortgage owners in the UK don’t have any life cover.
If you’re looking to protect your loved ones from mortgage repayments, then a decreasing cover policy or level-term policy might be the best options.
Level-term insurance covers you for a set period and could take care of financial commitments like your mortgage, whereas a decreasing cover policy decreases over time and is often taken out to cover mortgage or similar decreasing debts.
You’re Getting Married
Getting married is an incredibly exciting time, where you are joining together to spend your lives with each other. This joining includes your assets – and debts! So, if a tragedy happens, you would never want your partner to be left struggling.
This is where life insurance comes in, as a pay out on your death will help ensure that your loved one is left financially comfortable. Here you can choose to take out a joint or single policy. Your joint policy will be cheaper, but keep in mind that it will generally only pay-out once. This means that if your partner dies, you will no longer be covered.
You’re Having a Baby
Babies are expensive, there’s no denying that. So, if you weren’t there to provide them with clothes, toys, childcare and help with their university fees, a life insurance policy can step in here and help your children financially.
Here you might consider an increasing cover term policy, as this policy will pay out a large lump sum if you die within a certain term. For those who would rather ensure that their children receive money – rather than your debts getting paid – you could consider a level term policy.
To Cover Your Funeral
Funerals can be incredibly expensive. To make sure that your loved ones aren’t left with the bill, a life insurance policy can help pay for your funeral and any other expenses.
Here an over 50s life cover is particularly good, as most places will accept a person without a medical assessment. These policies differ in the fact that they don’t have a fixed policy, rather they will pay out on death.
The pay-outs on these policies aren’t only for funerals. Your family can use the money for anything. Either way, you’ll have peace of mind.
