Got a mortgage?
Are you the household breadwinner?
Then it is probably a pretty good idea to start looking at Life Insurance. The main purpose of Life Insurance is to leave your family some money in the event that you pass away, during a time that they are financially dependent on you.
If you have a mortgage, or any other loan, it is important to consider who will pay off the outstanding balance if you are not there to pay the bill. The loss of your income to the household through work, pensions or benefits could impact significantly upon your family's ability to pay regular bills. Will you be leaving your partner to pay the mortgage without any income from you?
You do not have to have Life Insurance but it can make things easier for your loved ones. The Life Insurance payout could be used to pay off the remaining mortgage balance, leaving your family with the security of owning their home outright and removes the need to pay the monthly mortgage repayment. This would leave the spare funds free for them to maintain their current lifestyle. You could also avoid the situation where your family can no longer pay the mortgage repayments due to your lost earnings and have to unfortunately sell the family home.
If you have children Life Insurance payouts can be used for any number of things: first car, house deposit, private education, etc. In the unfortunate event that you pass while your children are young a Life Insurance payout could be used to replace your lost earnings to help towards their general upbringing e.g. school trips, hobbies, maintenance of the household, etc. This money could in no way replace your presence in your childs life, but it could help them to live comfortably.
The same can be said if you are the breadwinner for your household regardless if you have any children or other dependants. Would your partner be able to maintain their standard of living if you were to pass?
In some ways, you can think of Life Insurance a bit like contents insurance for your household items. It is not essential, you pay for it and will hopefully never need it, but it provides you with a peace of mind that should something go wrong your family will be able to pick up the pieces.
Life Insurance costs are based upon a number of factors including your smoker status, age, occupation, medical history, leisure activities and any extensive trips abroad that you make. The amount of money you want to be insured for (sum assured) and length of the policy term will be the key factors in determining the cost of cover.
For a typical 30 year old office worker who is a non-smoker, they may find the following premiums for Life Insurance available to them:
|Sum Assured||Policy Term||Premium*|
You should not just go for the insurers that you know either, brand loyalty may not do you any favours when it comes to getting the cheapest Life Insurance for you. We would always recommend that you choose an insurer who is well established with an evidenced claim payment history. You should look at the right insurer for your circumstances: for example one insurer may rate your policy premium due to your BMI or health condition, another may accept you at standard terms. Always do your research, or better yet, let an insurance broker do it for you and take all the hassle away!!
If you would like to find out how much Life Insurance may cost for you, please feel free request a quote online Here. Our insurance advisers are also available on 0800 567 7450 if you would like to discuss the ins and outs of Life Insurance and the insurers that are available in today's market.
*Premiums correct at the time of research, 2 February 2016
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Please feel free to request a quote from us using our online form. As a broker we search a fair analysis of the whole market and will always take your specific risks and concerns into account. For this reason we do not currently offer prices online but will always do our best to reply to you by email, text or phone as soon as possible.
The more information that you can provide us about your health conditions, hobbies, travel and/or occupation the better as this will help us to provide the most accurate indications of price.