Why do I need life insurance?

When will you die?  Nobody knows but unfortunately, some of us will die way too early and, as emotionally devastating as this would be, we must consider the financial impact on our dependants should this happen.  Life insurance provides us with peace of mind that when the worst happens all financial worries – mortgage, loss of income, funeral expenses, tax – will be taken care of, leaving emotional room for your dependants to deal with their loss.

Below we have answered some of the come questions we regularly come across which you will find helpful in deciding how important a life insurance policy is.

Do I need life insurance?

Life insurance really is a need for those who have a family or people who rely on their income to pay household expenses such as mortgages and to cover the impact of losing a wage.

If you live on your own and have no dependents you don’t really need life insurance.  Maybe you want everyone to celebrate your life after you’ve gone? Instead of paying life insurance premiums, use that money to have a party now so that you get to enjoy it too!

When should I take out life insurance?

You should seriously conder taking out life insurance when you start a family, buy a house, get married or start living with someone long term. You just need to think if your death would create a large financial risk that will have a significant impact on your loved ones. If this is the case, you need life insurance.

If you are struggling to pay household bills though, you should make sure that you sort out your budgets first before getting life insurance so that the premiums can be maintained. It’s a good idea to get life insurance as early as you can but your policy will be invalid if you don’t keep up with your premiums so don’t waste money by starting a policy when you can’t really afford it.

How does life insurance work?

Life insurance is an insurance policy designed to pay out a lump sum to your dependants upon your death or a serious illness such as cancer (if you add critical illness cover – check policy for details as some illnesses are not covered.)

What is the best life insurance?

The best life insurance policy is one that is affordable for you and covers all your needs.  It is reassuring that the life insurance industry is heavily regulated which makes it difficult for insurers to limit the times when they payout. This means that your choice of company is likely to be a reliable choice.

What is the average life insurance cost per month UK?

Life insurance can start from as little as £5 a month.  However, there are many factors that could impact on the monthly life insurance premium such as medical history, family health history, lifestyle, age, etc.  So the best thing would be to contact us and find out how much it would cost for the cover you require.

How much life insurance cover do I need?

Everyone thinks about the mortgage when calculating the amount of life insurance cover they need.  But what you must also consider is what kind of lifestyle do you want your dependants to live should you die.  Also, an untimely death could have a mental health impact on your dependants making it difficult for them to immediately go back to work which may result in loss of income.  Any unsecured debts such as credit cards, personal loans etc will end when you die but the creditor will be able to claim on your estate – so the amount of cover you need will need to take account of this unless you have the policy written into trust – ask us for details about this.