Life Insurance is so important to have – almost as a backup strategy we never know what ‘life’ has in store for us. Yet the majority of us know that an accident is inevitable somewhere throughout our life time. We also know that our circumstances will change, whether it be a pay rise, marriage or becoming a parent. Often these life altering events drive us to the process of taking out life cover so that we are able to provide financial security for loved ones if an awful situation arises.
There are various reasons as why people have a life insurance policy:
– Becoming a parent and starting a family brings huge responsibilities and at this stage in life, people start to think about how best they can protect their family, therefore they seek life cover.
– Throughout a working career, income levels are bound to fluctuate, and in terms of life insurance, this policy can cover whatever life style you are living.
– In Marriage if you have to cope with the loss of the person you love, having to deal with the burden of debts, calls and questions about financial matters is the last thing you want to deal with. To make sure your debts are covered and make the transaction as easy as possible for the loved ones you have left behind, you should seek to purchase life insurance.
– Moving house and/or buying a house is a huge responsibility and probably the most common reason for people take out life cover. In the case of a bad event, your debt will be covered if you have life insurance cover.
– Life insurance is important for future finances as it instils a sense of security and safe guards the future hopes and dreams of your loved ones.
– Knowing your mortgage will be paid off should the worst happen is a huge weight off anyone’s shoulders. Buying life insurance as mortgage protection, puts people’s minds at rest, knowing that family members will not be left homeless if a dreadful situation occurs. This especially concerns those whose house is in their name, however live with their husband/wife, family or long term partner – they would have no say regarding the house after your death. In addition life insurance can also be used to pay off an outstanding mortgage balance.
Another form of financial protection is Critical Illness Cover; research shows that we are five times more likely to need critical illness cover before we reach retirement that any other financial protection. Critical illness protection pays a tax free lump sum on the diagnosis of anyone of a list of serious illnesses; including cancer and heart attacks.