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It is important to think about life insurance

By Donna Tuohy

  • Financial Planning

Just 50% of households with mortgages in the UK currently have life insurance, leaving many families exposed to potential financial difficulties in times of crisis. Have you ever wondered if you could manage your mortgage, childcare expenses, or other financial obligations on a single income if your partner were to pass away? What if an illness prevented you from working?

Life insurance might not be something you want to think about, but it offers a practical way to secure your family’s financial future when it matters most. Over the years, I’ve assisted numerous clients in finding suitable plans to protect their loved ones. Still, some clients often question whether life insurance is truly necessary and if they could do without it.

Surprisingly, life insurance doesn’t have to be expensive. It could even be less than your monthly mobile phone bill. So, if you’re willing to spend that amount on a phone, why not consider a plan that could safeguard your family and their well-being?

The benefits of life cover are endless; I have tried to highlight some of the key ones below:

Protecting your family:
In the unfortunate event of your passing, your family’s financial situation could change drastically. Life insurance provides the means to replace your vital income and grants peace of mind that your loved ones will be cared for, ensuring they can cover essential expenses like bills, transportation, and housing.

Paying off debts:
A mortgage is one of the largest outgoings you may have each month. By safeguarding this debt with a life insurance or mortgage protection policy, you ease the burden on your family, ensuring they can continue living under a roof without financial stress.

Life cover for renters:
Even if you’re renting, life cover remains essential. Consider how your family would pay the rent without your income. Having coverage ensures they won’t have to worry about such matters in case of your untimely demise.

Single and independent:
Life insurance matters even if you’re single and live alone. It provides valuable financial stability in case you become unable to work due to illness or injury.

Employed or self-employed:
Regardless of your employment status, protection is crucial. Income protection can replace a significant portion of your salary tax-free, helping you maintain your lifestyle until you recover and return to work or retire. Additionally, critical illness cover offers a tax-free lump sum in case of diagnosis, enabling you to take time off, fulfil your dreams, or clear outstanding debts.