Why Protect Your Life?
The death of a spouse who is the main income generator is not just a physical death. It is also potentially the death of an income. The effect of the loss of that income on the remaining members of the family during the ‘dependency period’ can be quite dramatic.
A life insurance policy is designed to pay out a lump sum upon the death of a person or persons named on the policy.
There are many reasons why life insurance is required, the most common being to provide for a loved one, or to ensure the repayment of a long-term debt such as a mortgage.
It makes sense to ensure that you have sufficient life cover to repay your mortgage if you die. This is particularly important if you own the property with a partner or have a family. If you have a young family you should consider the financial impact on the family if one of the parents were to die.
In some cases only one partner may be in employment while the other brings up the children, however you should both consider life insurance as there will be significant financial pressure if either of you were to die.
If the working partner were to die, the family have lost the benefit of the regular income. If the partner bringing up the children were to die, then the remaining partner may need to give up work, reduce their hours worked, take a different job, or pay for additional support such as childcare. Either way, the loss of a parent will not only have a huge emotional impact, but a major financial one as well.
Even if you are single, in some circumstances it is still a prudent decision to take out insurance. You never know when your circumstances may change and you may find you are uninsurable when you come to apply in the future.
Contact one of our fully qualified advisers today for personal advice on the options available to you.