Do I need life insurance?

There are far too many people in the UK with either insufficient life cover, or none at all and there are many reasons why people don’t protect themselves. Here are some of the most common objections when it comes to life insurance.

I don’t need life cover, I don’t have any dependents

With no dependants, life assurance might not be all that relevant to you, but it’s not the only type of cover to consider. Most of us rely on our income to cover our mortgage and other bills and to maintain our lifestyle, so what would happen if you were unable to work due to illness or injury?

These are also things that you can protect against – perhaps with a policy that pays out a cash lump sum or one that replaces your income. Policies like this are designed to give you financial peace of mind when you need it most.

I have protection through my employer

Cover through work can be a great benefit, but it can be limited and it may not always be enough to protect what is important to you. And remember, it will only be in place whilst you are working for that employer. With the average person changing employer every 5-7 years, can you be sure that you will definitely have this cover when you need it most?

It is important to know exactly what cover you have from your employer; how much they would pay in the event of sickness and for how long, how much death cover your family would be entitled to – unfortunately it is usually a lot less than we think and it is a good idea to know now, when we can review your cover, rather than when you come to make a claim.

I set all that up years ago when I bought the house

It is always a good idea to regularly review the cover you have and make sure that it adapts to your changing circumstances and needs. In terms of mortgage protection for example, a lot of things can change over a 25-year term and the cover you have may need to change too – whether it’s the amount of cover or how long the cover is for. There are also things such as a growing family to think about.

The other thing to consider is that the cost of life assurance has come down over recent years, so while you might have the right level of cover, you could be paying too much for it.

My family would help me out if I needed help

Of course your family will help if they are able to, but would they be able to provide all the financial support you’d need? Would this help definitely be available throughout the whole term of your mortgage? The right protection will give you and your family the certainty that financial support will be there when you need it.

I’ve got savings I can fall back on

You may have savings put aside, but if your income stopped tomorrow, how long would that money last if it had to cover all your bills, mortgage, food, transport & lifestyle costs. If you are saving for something like retirement or your children’s education, you’ll also need to think how you would replace these savings if you had to call on them to replace your income. A suitable protection policy will allow you to safeguard your savings for the important things.

I don’t need it yet, I’ll sort it out when I’m a bit older

Unfortunately there is no simple rule that tells you when you’re the right age to take out life insurance, but if you have a need for cover, you should have it. The good news is that the best time to buy protection is when you are young, fit and healthy, as the premiums are cheaper – and with guaranteed premiums you can fix the cost for the whole term of the policy.

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