Life insurance, do I really need it?
Posted on 12th September 2023 at 15:13
I don’t need life insurance…
We get this a lot from clients when we approach the subject of financial protection. Mostly from the younger generation which can be excused because when you think of life insurance you are thinking of a dreadful day in the future many years from now and when you are young, fit and healthy and feel invincible. It’s not worth thinking about it now, is it?
Personal insurance is much more than a lump sum paid out upon your death. Personal insurance can replace your income when you cannot work, pay a lump sum to cover expenses if you are critically ill, replace the income you leave behind when you pass and a lump sum to clear your mortgage if you are critically ill or pass.
Who needs insurance?
Anybody with an income, anybody with financial commitments, anybody with financial dependents.
You can create your own bespoke package to provide you with cover for every eventuality and to fill voids in cover that you do not currently have or that are not covered by your employer. The type of cover, amount of cover and the cost will be as individual as you are.
If you are self-employed and therefore do not receive sick pay, you will need income protection to replace your income in the event you cannot work due to injury or illness. At the time of writing statutory sick pay is only £109.40 per week, is this enough to pay your mortgage? Let alone the rest of your household bills, enough to put food on the table and maintain your current lifestyle?
You can choose how much of your income you replace, how soon your income is replaced and how long you receive the replacement income to ensure you have enough income and to fit your budget.
If you have a large financial commitment like a mortgage, what would you like to happen to that mortgage if you were to die or be on long term sick? Would you like it to be cleared in full? A life and critical illness policy could do that for you, so your loved ones are left with the family home and not the debt attached to it on your death.
Critical illness can be a wonderful product, if you are unfortunate enough to be diagnosed with a critical illness your mortgage could be paid off in full. You make a full recovery and return to work and normal life, but you are mortgage free for the rest of your life!
If you have children, what would you like to for them if you were to pass? How would they survive wihtout the income you bring into the home each month? You can replace your income upon your death so your partner and children have the income that their lifestyle is built on until they turn a certain age or for the remainder of what would have been your working life.
These things are things we do not like to talk about but do unfortunately happen so we must protect ourselves against them. 1 in 2 of us will be diagnosed with cancer in our lifetime and death has a 100% strike rate!
So don’t put off the important things and sort your personal insurance out today!
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