The importance of life insurance.

5 reasons why you need life insurance.

Insurance can be confusing and mind-boggling when it comes to choosing the right one. As protection advisors we hear you, we know how difficult it could be to decide what do you need and can afford.

We prepared a short guide below and 5 reasons why insurance is the most important thing you buy.

  1. To protect your loved ones

If your loved ones depend on your financial support, make sure you can provide for them if you are not able. If you have a young family or other dependants make sure they have an income or a lump sum to cover the costs of living, at least for some time to make life adjustments. As they say, life insurance is not for you but for the ones you love.

  1. To leave inheritance

To leave an inheritance is an important part of life. Even if you don’t have much, a life policy in trust could be a big difference to your beneficiaries. This could help them to start saving themselves, provide a first step on the property ladder or give them a little bit of peace of mind for the future.

  1. To pay off any liabilities

Life insurance could also cover other debts – mortgage, pay off existing personal loans, credit cards of car finance. The life cover can protect your family from getting into debt because of the high costs of a funeral, solicitors or other costs associated with the estate.

  1. To give financial security

There is no certainty in life. But life insurance can give you peace of mind that your loved ones are sorted if you would not be around or not be able to work. No money can replace you, but it would help to manage their lives after you’re gone.

  1. Provide for lost income.

Life insurance can also provide for the lost income. If you are a breadwinner, insurance can pay a monthly income for the set time, for example until your children reach the age of 18. It can also be arranged for your spouse, partner or any other dependant to benefit. Family Income Benefit is designed to pay regular income to the family in case of your death. This can replace the lump sum level insurance or can be added to it.

And here is a list of 5 the most common excuses:

  • Too expensive

There are different levels of cover available making life insurance affordable to everyone.  The basic cover can be as low as £5 per month and the earlier you start, the cheaper it is. We have access to the panel of insurance companies giving you different level options and help you choose the right policy.

  • My employer provides one

This is a good start when it comes to life insurance but it might have its drawback. Most policies are between 2 to 4 times the annual salary, while this is a nice thing to have, it might not be enough if you have a mortgage and family obligations. Plus, if you leave your job, the policy will stop.

  • I can save up instead

While saving up is the right thing to do, the cost of something going wrong can be enormous. Think of the outstanding mortgage you have, the loss of income if you cannot work for more than 6 months or funeral costs, which are hitting on average around £5,000! All those costs can be mitigated by the right insurance and keep your savings untouched.

  • I don’t have time

It might feel like time wasted to search for life insurance, check all the comparison websites and go through all the small print you don’t understand. That’s why we have that sorted for you! Since we are the insurance advisors, we will do all the hard work and present you with your best options. No jargon, no small print, all in plain language easy to understand.

  • I don’t know what I need

Talking to the expert that helps you understand your needs is the first step. We have access to a comprehensive panel and solution builder that combined with the tailored advice will give you the best possible outcome to suit your needs and your budget.

Book your free consultation