Life Insurance



Death isn’t usually the topic of conversation many of us would like to have, but when you have family members who depend on you financially life insurance is a subject we should all talk about.

 

The main reasons people say they don’t have life insurance are:

I’m too young, I’m fit and healthy so don’t need it, I’ve never had time to sort it out and it’s too expensive.

 

Well let me answer those points:

I’m too young

Just because you might be young, it doesn’t mean you don’t have financial commitments or responsibilities. Plus, it will cost you a lot less than when you are older. If something happened to you today, do you have a way to pay off your mortgage or student loan debt? You’ll want to be sure that you don’t leave your family with large debts that need to be paid off.

In 2017, the average cost of a funeral with a traditional burial is £4,257 and the average cost of a funeral with cremation is £3,311 (according to the Royal London National Funeral Cost Index Report 2017). You don’t want to leave your family with the burden of paying this cost during an already tough time. Be sure that your family has the funds to cover these expenses by factoring them into your life insurance policy.

 

I’m fit and healthy

Whilst that’s great it also means it is the best time to get life insurance, but remember, you are neither indestructive or immortal. If you fall seriously ill, or as you get older find it hard to maintain the same level of fitness you will find it harder and more expensive to obtain the same level of life insurance.

 

Never had time to sort life insurance out

Set aside an hour with a financial advisor who will do the work for you ensuring you have the cover thats right for you and your family. Don’t let your “didn’t have time” turn into your loved ones saying “if only he’d/she’d had time.”

 

It’s too expensive

It actually isn’t and it may just be the most important financial product you ever buy. According to the Association of British Insurers. in 2013 more than 25,000 people claimed more than £1.3 billion on the most basic form of life insurance. The average payout was £51,500 and most people will have been paying just a few pounds a month in premiums. Claims on more complex policies, such as those that pay out when someone is critically or terminally ill show the figures increase to more than 86,000 policies paying out almost £3 billion.