Life insurance – do I really need it?

Life insurance – do I really need it?

One way to determine whether or not you need is to consider your financial obligations and what the impact of this would be for your loved ones if you were no longer around.

Why do people buy Life Insurance?

Buying a new home –

If you die before your mortgage is repaid, then the responsibility of payments will fall to your loved ones. Life insurance enables you to be proactive about ensuring your financial commitments are taken care of after you have gone.

Having a baby –

Providing for your child to protect them against the unexpected is a way to give yourself peace of mind and enjoy the present with them more fully. Level and increasing cover term insurance are policies which pay out lump sums if you die within your agreed term. If you wish to leave a sum of money to your kids rather than pay off debts, then consider an increasing or level term policy.

Just married –

If you’ve recently become engaged or married and are joining families and assets, it can make life easier to know you are both covered if one of you were to die. Life insurance enables you to make financial contributions to your partner’s well-being after you’ve departed.

The type of policy that you take out could be single or joint. A joint policy is usually cheaper than purchasing two single policies, but in most instances, it only pays out once, if you make a claim you are no longer covered – the surviving partner would need to take out their own individual policy after that.

Two single policies can payout upon the deaths of each policyholder and can take away the complexity in the unfortunate circumstance that the relationship comes to an end.

Life insurance is taken to ensure what you want to happen, can happen.

For a confidential conversation around the most appropriate financial protection for you, please contact our advice@homeofmortgages.co.uk