When we are young and in good health, life insurance tends to be something we are aware of and imagine we might need in the future. Many people don’t see it as a priority until something happens in life that makes you think about the future and what will happen if something was to happen to you. It could be buying a house, getting married or having a family. How would your family and loved ones cope financially without you?
The truth is the longer you wait to obtain life insurance, the greater the chances become of something happening before you get round to setting up a policy. So, if taking out a life insurance policy has been on your endless to-do list for a while, here are our top ten reasons why you shouldn’t wait any longer.
Source – @jessicarockowitz
Losing a family member is always going to be hard emotionally. However, if the worst happens, you can take out a life insurance policy to ensure your family is financially secure without your income. Make sure you have adequate cover for the mortgage and other monthly household expenses to look after your family if you pass away.
It’s a sad fact, but the average cost of a funeral in the UK is £4000 plus. Making sure you have a life insurance policy in place can help cover cremation or burial costs. It is, of course, possible to pre-pay for your funeral separately, but most of us don’t think that far ahead and once we are there, it may not be feasible to do so out of pocket. Having life insurance that includes the costs of your funeral and life’s other expenses means your loved ones won’t be left with the headache of a giant funeral bill after you have gone.
When you die, your next of kin may become liable for any outstanding debts in your name. In the case of loans and mortgages where you have co-signed, they could become solely responsible for the repayment of any outstanding loan repayments. Life insurance can take care of any financial obligations if you die and take care of any lingering financial agreements. Protecting your family and your estate.
If you’ve got children or recently got married and hope to start a family one day, you’ll want to make sure they are financially looked after if something happens to you, your spouse, or both of you. Within your life insurance policy, you can specify that a certain amount is to be kept aside for your children’s future education, making sure that they do not suffer financially in their education after your death.
Buying a house is a key milestone at which many people consider buying life insurance. However, think about what would happen to your mortgage repayments if you die? Could your spouse or family afford the repayments? Many homeowners opt for a decreasing life insurance cover – where the amount paid out is less at the end of the policy term than at the start due to your mortgage reducing over the years that you are paying them off. With this type of policy, the premiums tend to be lower, but you still have the reassurance your mortgage will be paid off during the life of your mortgage.
The inheritance tax costs can run into thousands of pounds and take a large chunk of any money you leave behind for your family. Taking out a life insurance policy that also covers the inheritance tax bill will make sure your children or other beneficiaries receive the full benefit you are leaving them.
None of us can predict the future or honestly know what tomorrow might bring. While you may be fit and young, no one is immortal. Taking out life insurance protects the future of those you leave behind. Even a small policy can help them financially and give you the peace of mind that you are leaving something behind for their future.
If you’ve worked hard to build up a successful business, you must take out life insurance, so all your hard work doesn’t go to waste. In addition, if you are in partnership with another party, you should both consider cover. This will ensure the other party isn’t left with a substantial financial burden on their shoulders.
Even if your children have grown up and flown the nest and the mortgage is paid, you might want to make sure those left behind are left with something to help them along their path in life. Your children might have their own children at this point and getting whole of life insurance could make sure they have additional funds towards bringing them up.
Cost is one of the main barriers people have to buying life insurance. However, coverage doesn’t have to be expensive. For example, by comparing options, you will find that term life insurance is less costly than whole life cover, and decreasing life insurance is even more affordable still. In addition, the younger and healthier you are, the cheaper your premium will be. For example, if you are a young non-smoker with no existing health conditions, you could pay under £10 a month for coverage with some insurers.
We hope we’ve convinced you to seriously think about getting some life insurance to protect your families future. If you need guidance on selecting the right policy, click the button below to be taken to a form where we will collect some details before passing you over to a life insurance specialist.