There’s only one thing that’s certain in life and that one thing is the reason for Life Insurance. Life insurance is our form of protection for the unforeseen events that can be just around the corner.
In the event of serious illness or death, life insurance covers future costs for our dependents, such as college fees, funeral costs and even mortgage and rent repayments. It can be paid out in lump sums or as regular payments which the policy holder can decide on. And with the exception of children, we all need this policy. Here’s why.
- Peace of mind – As we get older we start to worry about our family members and how they will cope in the event of our illness or after we’re gone. A life insurance policy acts as a safety net of sorts and can give great peace of mind that our family and dependents will be protected financially in the future, in our absence.
- Favourable tax treatment – Every financial situation is different so it is wise to talk to a reputable broker about tax but unlike all other financial products, death benefits are generally tax free. There are also life insurance products that can be set up like a pension, providing you only with a lump sum on death but allows for income tax relief in the same way as a pension.
- Leave a clean slate – A life policy takes the burden of any outstanding debt from family members. An infusion of cash can deal with any adverse financial consequences of the policy holder’s death.
- Contributions towards the future – A life insurance policy can never replace the life itself, but it can help pay for a mortgage, electrical bills, education, a new car and much more. It can also be invested to provide a regular income for the beneficiary.
- Multi-insurance policies – In many cases you can bundle your life insurance policy in with other types of life insurance. There are plans for everyone with many covering a range of different critical illnesses, so it is built around you and your lifestyle.
- 2 for the price of 1 – Some insurers will offer a discount on a joint policy when taken out with a spouse.
- Flexibility – It is often possible to increase or decrease the benefit of the policy in the future or simply just continue the plan longer than the initial defined period. For that reason re-doing paperwork and health assessments may not be needed in every scenario where you may want to keep the cover going for longer.
- Ensure insurance – the longer we leave the purchase of a life policy, the less likely we are to be granted coverage. With age, comes health issues and the older we become the greater our risk in the eyes of the insurers. As we age, there is a chance we won’t qualify for life cover or there is a possibility we’ll have to pay more for it.
- Longevity of Life – Studies have shown that with every year that passes, we will live ¼ of a year longer. That’s a long time to rely on one salary, one pension, one source of income in our long lifetime to come. A pay-out from a life insurance policy can have a vast improvement on your quality of life and your family’s life, throughout your lifetime.
- Starting early – the cost of a life insurance plan for people with minimal or no underlying health conditions can be quite low and so it’s attainment and payment maintenance, even during financially difficult times, is easier than many other household bills. The security blanket it then can provide, should it need to be paid out, will ease the financial burden on a family for many years after it is paid, if the worst were to happen.
If you’d like to speak to someone about your life cover, please email email@example.com or call 01 563 4300.