Do You Even Need Life Insurance?
In the fast paced era in which we live in many people are very quick to make sure our cars, houses, mobile phones and pets are insured. On the household priority list of things that need protecting. One of the most important things that definitely needs protection is often overlooked by many.
At Life Insurance Cover we have recently completed a study of household protection priorities, which highlighted some interesting factors. Our study found that over 77% of households would insure their pets over buying Life Insurance protection. It is also worth noting that over 80% of the people asked were more likely to have mobile phone insurance than Life Insurance Cover.
More Phones Protected Than Families
In the age of technology it is understandable to protect your mobile phone, just in case it is lost, damaged or stolen. For those who do not have gadget/mobile phone insurance, it may cost a few hundred pounds for a repair or replacement handset. However, our study highlighted the shortcomings of not having a Life Insurance policy for the future. Similar to mobile phone, if something happens to you. Including long term illness, disability or worst case scenario you pass away. Would your family be able to continue living in the home you have provided, pay their bills, and have financial security?
By choosing to protect today and provide for the future with a Life Insurance policy. Will provide not only peace of mind, but also a financial safety net for your loved ones. In our extensive guide section we have explored the many ways in which the cost of Life Insurance is less than you expect. The cost of a Life Insurance policy will depend on your age and health. So it can be much cheaper to insure yourself when compared to mobile phone devices or your pets.
By using an FCA regulated broker, like Life Insurance Cover who search and compare all of the UK Life Insurance providers. We can help you Compare Life Insurance Quotes and get the right Life Insurance at the right price. At Life Insurance Cover we would normally suggest you consider putting a Life Insurance protection policy in place if you belong to one or more of the following categories.
Parents And Life Insurance
Every parent has the unenviable responsibility to ensure that each of their children are looked after and provided for financially during their childhood and the future. This should not change even if the worst happens to you.
All Mums and Dads have huge hopes and plans for their children and wanting to ensure that they can live the very best life possible. However, would these ambitions be attainable if you were to pass away? Could they carry on living in the family home? Would the family finances be able to pay for them to go to university or college? Or even buy a home of their own for them?
By choosing to make sure you have cost effective Life Insurance in place is a vital protection for the future if you are a parent. It could mean that your family would receive a lump sum payment to provide a financial safety net when you are no longer around. It is also worth noting that you can put your Life Insurance in trust for the future. This enables you to choose people you trust to look after the payment from the Life Insurance policy and make sure your wishes are carried out.
Do Homeowners Need Life Insurance?
As a homeowner with a mortgage and ongoing household costs, could your partner, spouse, or family be able to maintain the mortgage payments without you? Would they have enough money each month to be able to afford to remain in the family home?
If the answer is no and your loved ones would not be able cover the ongoing costs, a Life Insurance protection policy could be vital. By ensuring that you have enough protection in place to pay off any large debt including a mortgage will provide stability for the future.
Many new and existing homeowners have purchased their homes together, which is termed as a joint mortgage/ownership. If you have purchased your home jointly with someone else, it is essential for you to have a Life Insurance policy in place to protect both home owners from the loss of the other person’s income.
Different Types Of Mortgage Life Insurance
There are many different cost-effective ways to protect a mortgage. For example, if you have a standard (capital and interest) repayment mortgage. A Decreasing Term Life Insurance policy which are specifically designed to reduce in protective cover alongside your outstanding mortgage, is a cost effective Life Insurance solution.
The other most common type of mortgage is an interest only payment type. This mortgage type can be protected with a Level Term Life Insurance policy because the mortgage level does not reduce over time in a similar way to a Level Term policy which remains the same during the length of the policy. This policy type can be slightly more expensive as the insured amount remains the same for the policy duration.
Making sure you that you have the right protection cover in place means you benefit from the peace of mind that your spouse, partner, or family can remain in your home. Providing a safety net for their future if you are no longer around.
Protection For People In Relationships
Many UK household are comprised of people who are married, in a civil partnership, or a co-habiting partner. For many people in a relationships your lifestyle could be structured on the basis of a joint shared income. Many couples choose to share the payments of rent, mortgage, or bills either equally or a set percentage. It is also worth noting that many people choose to have a joint account that you both contribute to from which your regular outgoings are paid.
If you rely on a partner to help with the monthly costs. Could your spouse or partner cope financially if something happened to you?
Even if you are not the main source of the household income, would your partner be able to manage all the financial outgoings on just their income if you were to pass away?
If you are part of a couple who are financially reliant on each other, it is a good idea to make sure that you protect your partner for the future. By choosing to put a Life Insurance policy in place which can provide a lump sum if something happens to you. Will provide financial stability and replace your income and provide useful support to your loved ones.
Do Single People Need Life Cover?
As a single person without people who rely on you financially, you may think that you do not need a Life Insurance policy. However, there may still be a financial need for you to put some form of Life Insurance in place for the future. Leaving any debt or financial issues for your family to resolve after you pass away. Could inadvertently put them in a financially vulnerable position.
You may have credit cards, loans or other debts that will need to be paid after you pass away, which may fall to your family to pay.
Another option could be to ensure the costs of a funeral are paid using a lump sum payment from a Life Insurance policy. This could help your loved ones during an emotionally distressing time.
It is also worth noting that if you own a property or have an extremely valuable estate and you don’t want your loved ones to lose a large portion of it to Inheritance Tax. A Life Insurance policy can be used to offset or reduce the financial burden of Inheritance Tax.
Do Business Owners Need Protecting?
As a business owner you will probably have policies in place to protect buildings or vehicles, replacing your income and repaying your business debts. It could also be a sensible choice to have enough Life Insurance protection in place to protect your financial interest in your business.
Because you are a business owner, you will have spent years of hard work and investing money in your company to be successful. It may have taken quite a while and a great deal of effort before you could even draw an income.
If you were to pass away, what would happen to the hard work you have put into your business? You may want to ensure that your loved ones receive the full value of your life's work. Without the right level of Life Insurance cover in place. Your loved ones may instead inherit a share of a business. Although a business may have an intrinsic value, it may not have enough financial liquidity to help them to pay bills or maintain ongoing costs like mortgage payments.
Another key point to remember for co-owner businesses is that if you pass away. It could present a challenge for other owners, partners or shareholders. If you were to pass away unexpectedly, it could severely impact the ongoing future of your business. Including all the hard work you have done, could be lost
Get A Free Life Insurance Quote Today
As detailed above, there are many different types of people who would benefit from having a protection policy in place. So, which would you choose to insure first? A car, pet, phone or gadget or yourself and the future?
As an FCA regulated broker with a team of Life Insurance experts. We search and Compare Life Insurance quotes from all of the providers in the UK. We can help you to obtain the Life Insurance cover you need at the best possible price for the future.
Comparing Life Insurance Quotes and applying for cover is quick and easy. Just complete one simple online form and we’ll do the rest. By protecting yourself today, can provide for the future of your family and loved ones.