Could you afford your mortgage repayments, childcare costs or other expenses on one salary if your partner passed away? What about if you become ill and are unable to work? Could you meet your current financial obligations? 50% of households with mortgages in the UK would have to consider this carefully if the worst were to happen to them or their partner.
Life insurance may not be something you want to think about, but it is a sensible way of providing for your family’s financial future if needed.
I have been working with clients for years and have helped many people find a plan that suits their needs. However, I often find clients question if life insurance is necessary and could they carry on without it?
Life insurance isn’t usually as expensive as you think; it can be as little as the price you pay for your monthly mobile phone bill. If you are willing to spend that amount each month on a phone, why not on a plan that could protect your family and loved ones?
There are many benefits of having life cover, but if you are still unsure if you need to consider a plan, then take a look at these examples, which show you the importance of getting cover as soon as possible:
Protecting your family:
If you were to die, your family’s lifestyle would change dramatically. They would have to survive and maintain their current lifestyle without your income. This isn’t about luxuries but the necessities they need to live such as household bills, transport costs and a house to live in.
By purchasing a policy, you will be replacing that all-important income and gain peace of mind that your family will be looked after.
Paying off your debts:
When you die, any debts you have must be repaid from your estate before your family will receive anything.
Having a mortgage is probably one of the most significant debts you will ever have. Protecting this debt with a life insurance or mortgage protection policy will make things easier for your family and ensure they have a roof over their heads.
You don’t have a mortgage? You still need life cover:
If you are renting, you still may need life cover. How will your family continue to pay the rent without your income? Will they have to move from their home? Will they fall behind on the rent? This is the last thing they need to be worrying about in the event of your death.
Even if you currently do not have a family and you are single and live on your own, it is still essential to ensure you have some cover to help you remain financially stable if you are unable to work.
Employed or self-employed, you need protection:
If you become ill due to an accident or illness and cannot work, could you live off State Benefit? Could you still afford your monthly commitments? Income protection makes it possible to protect between 60-80% of your salary tax-free to maintain your current lifestyle until you can return to work or retire.
If you are diagnosed with a specific illness, critical illness cover will pay you a tax-free lump sum, so you can take time off work, do something you have always wanted to do or clear outstanding debt you might have, making your life easier.
If you would like to discuss this with a friendly, sympathetic, and experienced person, please speak to Donna, our life insurance consultant, on 0161 929 2626. Also, if you have an existing policy and would like us to carry out a free check to see if it is right for you and your circumstances, we can help with this.