Life insurance is one of those things we would rather not think of. Thinking forward to a time when we are not here, is not the most pleasant thing in the world, but there it is, we all have to do it.
There are loads of reasons why it is important to get life insurance. It is often a requirement of getting a mortgage which is where many people start on the path of insuring their life, but it all comes down to realising that your life is bigger than just you.
Life insurance is about taking care of those you love when you leave. It is about protecting your family and making sure that even when you are no longer here, you are able to help look after the people closest to you.
There are so many different life insurance policies and choosing the right one for you can be a bit of a maze. It is an important thing and really, you want to make the right choice in the first place, and hopefully never have to think about it again!
It can be tough, but help is at hand! Financial advice is the easiest route to finding the right policy for you and your circumstances, and here at Perfect Protect, we can recommend policies in a straightforward, friendly way.
Should I get life insurance?
The main reasons behind getting life insurance are for protecting your loved ones. How would it impact them financially if you were no longer here? Would they struggle to pay the bills, could they still keep the mortgage payments up?
Grim questions, we know, but definitely things you should think about. And speaking of grim…..
There are potential medical costs, outstanding debts and, of course, funeral costs to consider, which all have to fall on your next of kin. So protecting them from all of this is the real function of life insurance.
So should you get life insurance? We would say yes. We know that it is our job to sell it, but whether you use our advice to get life insurance or not, we think it is a very good idea!
Who should get life insurance?
It is not for everyone. Perhaps you have no dependents, or you have a policy already through your place of work. Perhaps your partner has a source of income that does not rely on your input and they could easily continue financially after you are gone.
However, the majority of people do not fall into these categories, so who should be getting life insurance?
Home Owners
A mortgage is usually the biggest debt you will incur in your lifetime. Should you pass away before it is paid off, it might fall to your loved ones to finish off the payments, which can be a serious financial burden. You can take out a decreasing term life insurance policy which specifically covers decreasing mortgage debt to stop this from happening.
When you have people who depend on you
Several life insurance policies focus exactly on this. You want to be able to support your partner, children or other associates who depend on you. This way, you can live your life in the knowledge that if anything bad happens, you have that safety net.
What are the different types of life insurance?
There are a couple of different policy types and with thousands of companies competitively selling them, this is where sound financial advice comes in very handy. The main types of life insurance are –
Mortgage Cover (Decreasing term)
Just as it says in the title, the payout of this policy is expected to pay out exactly what your mortgage balance would be at the time of claim. This is best suited for protecting your mortgage as your payments decrease over time, and the policy is perfectly matched to that.Life Cover (Level term)
With this policy, you get a lump sum. The payout stays exactly the same, for the duration of the policy, whether you should pass away tomorrow or in 100 years. This one really pays off to get when you are younger as the prices are incredibly competitive.Increasing Term
This policy takes inflation into account and increases the amount of your payout by a fixed amount each year.Family Income Benefit
Helping your family financially even after you are no longer with them, the family income benefit pays a monthly, tax-free sum to your family to ensure their financial situation remains as stable as possible.How much life insurance do I need?
This totally depends on you, where you are in life and what your circumstances are. Again, this is where Perfect Protect comes in. We take most of the thinking out of the process and present you with tailored advice to get the very best policy just for you.
Which type of policy do I need?
There are a ton of them on the market, all focused on different areas of life. You can spend hours reading about it online, or you can just give us a call, and we will do the heavy lifting for you, looking across our panel of providers. We pride ourselves on providing simple, friendly advice that is completely to the point.