Why do you need life insurance and what are the benefits?

Life insurance is a funny one as it isn’t something the cover holder will ever benefit from personally. What you will get from the policy however, is the comfort of knowing that should the worst happen to them, their loved ones will be taken care of financially.


This guide outlines the benefits of life insurance and why it’s a good idea – whether you’re young, old or somewhere in the middle.

Life brings joy and responsibility

Life brings with it many highs. The first kiss. The first job. Buying your first home. Settling down with your partner. The joy of having children.

With love and achievement though comes some worry and more than a little responsibility. We may share a large financial commitment like a mortgage or be simply shouldering the parental burden of nurturing our children.

It’s a grim thought but what if you weren't around anymore? The thought of not being able to protect your children through life like you'd planned or of your partner having to pay off a mortgage alone isn’t nice to think about – but that’s no reason not to think about it.

Life insurance is a way of removing some of the fears about the future – at least financially.

Good reasons to take out life insurance cover

  • Providing some security against future money worries for your loved ones

A life insurance policy can bring financial security in many forms. Perhaps your partner won’t have to work, allowing them to spend more time with your children if you pass away. Or, it could help to pay off your mortgage, or maybe simply make the day to day a little more comfortable.

  • Funding your family future

Life insurance could make sure that you can still support your children through those big events in life and take the financial strain off your partner if you weren’t around.

For example, we all want to see our kids get the best education possible, including perhaps going to university. It doesn’t come cheap these days. Nor do driving lessons, weddings or any number of other activities.

  • A tax-free sum for your family

When you pass away, your estate may have to pay 40% tax on the value of your overall assets over the £325,000 inheritance tax threshold. If this might affect you, writing your life insurance policy ‘in trust’ could ring-fence the payment so that it’s separate from your estate and therefore not subject to inheritance tax. It would also be paid at the point of your passing rather than part of probate.

Does age matter?

We tend to think of life insurance as something that older people take out. That shouldn’t necessarily be the case. Life insurance has value as soon as you have something that you want to protect financially after you’ve gone. There is no age limitation on the peace of mind that comes with a life insurance policy and the rule of thumb is generally that the younger you are, the cheaper the premium. 

Revisit your policy regularly

The only thing that’s constant is that things change! Life doesn’t stand still and a life insurance policy taken out in one year might not look like you want it to look a few years later. Revisiting your policy every now and again will help ensure that the policy is still relevant for your circumstances.

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Life insurance is an intensely personal matter. That doesn’t mean it’s something that you should just sign up for without doing a thorough comparison of the costs and benefits.

We can help you do this without having to resort to many phone calls or emails. Tell us the type of policy you want and some details about you and we’ll show you comparable products that reflect what you’re looking for.

Try it today and find a life insurance policy that is right for you.

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