discussing financial issues with our friends, we often hear the same
concerns on repeat. The late gas bill, rising rents, the threat of
having a phone service cut. However, the issue of life insurance payment
rarely rears its head. For many, life insurance can be a morbid issue; after all, nobody enjoys the thought of their own mortality.
When we’re in our thirties, it can be all too easy to deem extra costs like life cover
premiums as superfluous. Given the country’s woeful economic
performance many are tightening their last belt notch and asking: ‘does
anybody really need life insurance?’ The answer of course, is yes,
although for some, the need is even greater than others.
Essentially, life insurance is a safety net for your family in the event
of your death. When family members depend on a single income source, is
it really worth taking a gamble by ignoring the net altogether? For
those who are young, single and carefree with no dependants, it is
understandable that, for them, life insurance may seem unnecessary.
However, this mentality is one that should evolve with your own
When an individual becomes one half of a couple, purchases his or her
first home and has children, life insurance becomes a life essential.
The majority of married couples pool their economic resources, and most
families could not cope financially without their dual-income. That’s
why planning for the worst could be the best thing for your family.
For working couples who own their own home, the option of mortgage
payment protection can be a wise investment. Many believe that, if they
have no dependants, it will not be necessary to invest in life insurance
payments. However, mortgage repayments are often the greatest household
costs to meet, and if your loved one falls ill, mounting debt letters
will likely be the last thing on your mind.
Mortgage payment protection, as part of a life insurance plan, ensures
that financial support is offered to meet these payments if one of the
breadwinners is unable to work due to illness. This would allow you to
protect your partner’s wellbeing, and focus on the more important
aspects of life. The plus side is this plan is often available at
various levels of cover, which often means you can find cheaper monthly
When your children are dependent, it is more important than ever to
secure financial protection for your family. Should you pass away
prematurely, adequate life cover could provide your children with access
to the very best education.
Sadly, it is not just unexpected deaths which can precipitate financial
woes. Should a member of the household be diagnosed with a critical
illness, the loss of income can often be compounded by medical costs,
creating financial strain during a very stressful time. For this reason,
critical illness cover
pays out a set amount in the event of a critical diagnosis, provided it
is on the list of conditions covered by the company. This level of
protection is extremely useful to working women, who are statistically
more likely to be diagnosed with a serious illness before the age of 60
than to pass away.
The key factor that we often forget is that, when it comes to life
cover, youth and good health is a distinct advantage. For example, a
non-smoking woman of 30 years of age could receive over £100,000 cover
with a 25-year payment plan at a premium of six Pounds per month. The
more you delay the need for life insurance, the further you get from the
lower-priced payment plans.
While we shouldn’t waste time mulling over morbidity, we cannot deny the
fact that life cover is no luxury. After all, there is no price tag on
health and happiness of one’s family.