Life insurance is a type of insurance contract which pays out a lump sum to your husband/wife/civil partner and/or your dependents (depending on the way the policy is set up) should you pass away during the term of the contract. The cost of a policy is determined by a number of factors including your age, health and lifestyle.
In essence, it’s a way of protecting your family, your business and your home in the event that you die (which, without being morbid, we’re all going to do).
It is estimated that one in four UK breadwinners (*1) do not have life insurance. That is a large number of of people who are uninsured.
The main reason for this, in my opinion, is choice. Unlike home insurance and car insurance, life insurance isn’t compulsory. You’re not breaking any laws by not insuring yourself. This means that you have a financial choice on whether to insure or not.
There can be any number of reasons for the decision not to take on life insurance. It can be costly if you have any pre-existing medical conditions, and if you are on a tight budget it can be seen as a ‘luxury’ that is not required. Another reason is that some people choose to save money for those eventualities without taking out cover with a third party. Or perhaps some people just don’t see the need for life insurance when they haven’t reached 30 years old yet.
Whatever the reason, it’s completely your choice to make but I think that Life Insurance is worthwhile because it gives you and your family peace of mind. It means that even if you are in piles of debt when you die, at least your funeral expenses can be covered and paid for (if your policy sum is enough to cover the costs).
Most people start looking for life insurance when they reach a key life stage such as age, buying a home, getting married, starting a family or in some cases having a major health scare that brings it into focus.
Assuming that age is on your side, your health is fine and your lifestyle is normal, life insurance can cost as little as £5-£10 a month (though this does really depend on the factors mentioned above, and you can opt to pay more for higher levels of cover with different payouts or longer terms).
If you’re reading this article and you’re looking at taking out life insurance, why not give us a call on 0800 028 4268 and one of our team will help you choose the right package from the available market.
(*1) One in four UK breadwinners don’t have life insurance : http://www.thisismoney.co.uk/money/news/article-3387027/One-four-UK-breadwinners-not-life-insurance-buy-life-cover.html