Whatever your age, it never really feels like the ‘right’ time to think about life insurance. But, in reality, it’s the opposite – it’s always the ‘right’ time. And, protecting your loved ones from a financial burden, isn’t the only benefit of having cover.
Here, we outline the key reasons why having life insurance protection is so important.
Support for dependants
If you have a partner who relies on your income to afford to live, or children or other relatives who do, then it’s important to think about how they would cope if you were no longer around.
Whilst there will most probably be some government benefits available to them, these are lower than you’d think. By having life insurance in place, you can ensure they’re financially taken care of.
Life insurance protection also means your family aren’t left paying for anything you owe. From credit cards to loans, these could be a high expense for your loved ones to cover. And, these debts include your mortgage too!
If your family still live in the mortgaged property, you’ll want to ensure that the roof remains over their head. Not being able to afford the mortgage and being forced to move would be the last thing they would need, in an already tough time.
The average cost of a funeral is over £3,000 – and this is often overlooked. Although there are ways to cut down this high cost, your family will want to give you the send-off you deserve, and naturally this comes at a price.
Life insurance will either provide your dependants with a lump sum of money, or regular payments, meaning they can use this to cover the high fees associated with funeral care.
If you plan to leave inheritance that equals more than £325,000, inheritance tax will be deducted from the total amount. However, it is possible to set up a life insurance policy within a trust, meaning there would be no tax.
Life insurance can also speed up the payouts if you pass away, reducing the need for your loved ones to go through a lengthy claims process.
There are a variety of different types of life insurance protection. The two main ones are:
Term life which runs for a fixed time and only pays out if you die during the specified period or,
Whole-of-life which pays out regardless of when you die.
Figuring out which life insurance protection plan you require isn’t easy, especially if you have unique circumstances such as a long-term health condition. This is where Red Star Financial Services can help. With our tailored guidance, we take the weight off your shoulders. Plus, we can advise on other types of cover too, including mortgage protection cover, income protection, critical illness cover, funeral plans and over 50’s insurance.
We want to make sure you’re best protected, as well as supported. Get in touch with our personable team today to discuss your situation.