Talking about life insurance is one way to clear a room. It’s not a popular subject, but like most subjects that people don’t like to talk about, it’s pretty important. But nearly half (44%) of adults with children under 18 don’t have life insurance, and even more don’t have any sort of critical illness cover. None of us wants to leave our loved ones struggling with debt or have them worrying about money, so why don’t more of us have life insurance?
Well, to start with, life insurance is pretty depressing – we get it; afterall, who on earth wants to think about dying, it feels like tempting fate. But you know, sometimes life’s just about taking the bull by the horns and dealing with reality. None of us will live forever so isn’t it better to be prepared and ensure that those you leave behind don’t have to deal with financial difficulty as well as grief?
One myth that surrounds life insurance is that it’s expensive; but the reality is, that it doesn’t have to be. The longer you leave it though, the more likely it will be. The older you are the costlier life insurance becomes, and that’s purely down to the fact that you’re more likely to come down with age related ailments.
If you’re in good health, don’t smoke and are relatively young, then life insurance could start from as little as £6.14 a month** – that’s less than two cups of fancy takeaway coffee – it’s a miniscule price to pay for your family’s peace of mind.
Having lots of assets is another reason why people think they don’t need life insurance. Whilst you might technically leave your loved ones enough value to live on, how easy will those assets be to cash? Selling cars, houses, jewellery and even stocks and shares can take time; life insurance will could mean there’s enough ready cash to meet immediate everyday needs.
And if you already have life insurance then good for you – but is it enough? Some experts reckon your cover should be for about 20 times your annual salary, but most of us with insurance are only covered for up to between three and five times our salary . When it comes to working out what your family needs – you might need to think about the cost of everything, not just the mortgage or rent. Consider school or university fees, the cost of childcare if your partner works, or even how much your funeral might cost.
Time is another factor; working, raising a family – it’s all just a merry-go-round, but life has its own script and has a habit of throwing curve balls when you least expect it. There’s never going to be a good time to think about meeting your maker, but taking ten minutes out now could save an awful lot of hassle and heartache for your family later on.
But it’s not just life insurance – what would happen if you became ill and couldn’t work – which is why bolting on critical illness cover can be a wise move. And if you’re not sure what type of policy would be right for you, then find out or speak to one of our life insurance experts and request a callback – don’t leave it until it’s too late.
**50% of customers could achieve a premium of up to £6.14 a month based on comparethemarket.com data from February 2018. Based on a £100,000 decreasing term policy over 10 years with guaranteed premiums for a 30 year old non-smoker.