Is Life Insurance Important, Do You Need It?

May 11, 2023

Life Insurance

While you’re here, we understand life insurance may not top your priorities. But if you’re building a career, starting a family, or buying your first home, it’s precisely when you should consider it.

Life insurance ensures that your loved ones, like your children or partner, will be financially protected if you were to pass away.

Consider factors like the type of policy, timing, and purchasing process when buying life insurance.

The primary use of life insurance is often to cover your remaining mortgage balance. As you make mortgage payments and reduce your balance, your insurance coverage declines accordingly.

To grasp the value of life insurance, let’s explore some common questions about it.

How Does Life Insurance Work?

As we mentioned previously, Life Insurance pays out a lump sum of money, or regular payments ( depending on how the policy was set up), upon your death to your beneficiaries. The amount of money paid out depends on the level of cover you buy.

Your monthly cost will be determined by a range of factors including; age, occupation, smoker status and current life style amongst other factors.

Can I Get Life Insurance Cover If I Vape or Smoke?

Yes you can.  However it should come as no surprise but insurance companies will deem you as ‘high risk’ meaning your premiums may be higher.

The premium will be calculated based on, how often you vape or smoke, number of years, your overall lifestyle and fitness as well as any existing conditions caused by vaping or smoking.

What Life Insurance Policy Should I Get?

The 2 main policies people in the UK look at are, joint or a single life policy.

If you take out a joint life policy, this ensures the money will go to the surviving policy holder when you pass away.

This policy is usually a lot more affordable over a single like policy since you’re covering 2 people within one policy rather than taking out 2 separate policies.

A single life policy, is were you only insure yourself and you decide where your money goes when you die.

Who Needs Life Insurance?

It’s easy to say everyone, so we’ll just focus on homeowners.

If you own a home, it’s likely you own the home with a partner. Life Insurance provides your partner with financial support after you pass away which means they’ll be able to keep the roof over their head. The amount of life insurance you need depends on your individual circumstances. Consider factors such as your income, debts, and living expenses, as well as the needs of your dependents.

When does Life Insurance Pay Out?

Life Insurance pays out upon the death of your policy holder.

However it’s worth noting that the money will is contingent on the claim being valid. Make sure you read all the fine print before agreeing to your policy.

For further information on payouts, contact your insurance broker or provider.

In conclusion, Life Insurance is most definitely worth it, especially if you own a home. It might not be the most exciting part of life, however it is an essential one.

Having the protection in place to ensure your family is left financially secure after you pass away is invaluable.

We’re here to help you find the best policy for you. Speak to a member of our team today and book your free appointment by calling us on 01925 573328.