Blog

Is your home more important than you?

Zurich Insurance undertook a survey in 2012 that had some interesting results.  Apparently, people in the UK are more likely to insure their homes with buildings and contents insurance than they are their own lives – indicating that as a nation we aren’t always sensible when it comes to what we value most.

While it is almost understandable to consider a tangible object as having a value, we very rarely stop and think about our own lives and how much value we add to our families’ lives.  Whether it’s a salary or childcare it actually all adds up!

If you are one of those people who is always on top of things when it comes to boiler insurance, car insurance, home insurance and mobile phone insurance but you do not have life insurance now could be the time to think again and ask yourself – how much am I worth?

When you die any debts or credit agreements will become your families’ issue.  Whether that’s a partner or a husband or wife or even your children over legal age, the debts don’t just stop when you stop. They keep on going.

This reason alone is a good enough reason to get life insurance as with it, your family can clear any of your liabilities up should you pass away, which means they won’t end up struggling financially.

Life insurance can be bespoke and is based on your personal circumstances, so even if you don’t have a mortgage, you can make arrangements so that should anything happen to you, your family can afford things like inheritance tax too.

Remember, your assets are not necessarily going to be available the moment you pass on.  This takes time and if there is a tax bill to pay, your family will need to pay it.  This is why having life insurance written into trust can be a valuable and sensible choice.

Whatever your age or your circumstances, why not get a quote today for one of life’s most priceless things…you!

When was the last time you looked at your life insurance policy?

We all know what it feels like when we suddenly realise we’ve not done something we should have done.  It could be something silly – like forgetting to record our favourite programme or it could be a little more serious when we suddenly discover we’ve left the passports behind en-route to the airport.

What is Life Insurance For is today going to look at one thing you won’t want to forget – your life insurance policy.  Doesn’t matter what type of life insurance policy you have either – particularly when you want to make a claim.

It is not surprising perhaps to discover that many people end up letting their life insurance policy lapse, which means they have absolutely no cover should something go wrong.  Another aspect to this is that when your life changes, your life insurance policy doesn’t.  Therefore, perhaps the new children and the higher mortgage and living costs haven’t been accounted for should something happen to you.

Some people try to account for these changes and perhaps take out additional cover, but the main issue is trying to keep track of those payments.  Perhaps the direct debit is listed under a name that is not familiar – which can result in you cancelling it perhaps when you can’t remember what it is for.

Another reason for lapses in life insurance policies can be as simple as us moving.  Perhaps we forgot to change the address on the policy and as we are paying annually, the one year the bill came through it was to the wrong address and therefore was never renewed.

The sad fact is, it’s so easy to let things like this happen and then when the chips are down and you really need it you discover that you’ve not got the cover you thought you had and end up in a bit of a situation.
So if you have life insurance – how can you avoid a lapse on your policy?

Consider a direct debit for annual payments and put your policies with all the other household bills.  This may seem a little over-zealous but remember, if you move you will no doubt use your bill box to make contact with your utilities providers – and you can simply do your insurance at the same time.

Don’t leave renewals or updates until the last minute.  Consider them part of any living cost and it’ll be a lot easier to sort out any changes so your policies don’t end up being out of date or completely void.

We all know that life can be busy and that sometimes it can be easier to put something off until a more convenient time, but in the long-run it could cost you dearly. Remember you took the cover out to make sure your family are provided for in the event of something happening to you.  The worst thing you can do is pay it for ten years and then let it go.  All that money invested for your financial security and it can disappear very quickly!

What is Life Insurance For looks at the realities of life insurance

If your family are likely to feel a major financial impact should you die, then it’s most likely that you’ll need life insurance as it provides a lump sum to them after you’re gone.

What this cash lump sum does is replace your income and can really make a difference to your family in meeting any financial obligations such as the mortgage and other living costs.

The amount received is not taxable and offers a good way of making sure those you care about have some kind of financial security net.

In considering if you need life insurance it’s a good idea to come up with some worst cases scenarios. So for example, if you were to die tomorrow would your family be able to cope with the bills without you? Would they have the money for things like funeral costs, tax, debts, any solicitors fees and so on?  Then after this would they have enough money to cope with living costs such as food, transport, school fees and so on.

You may also want to consider the longer-term goals you have, such as university costs or even retirement.  If these are likely to be a problem when you’re not around, then life insurance could provide a solution.

When someone dies it is always difficult, not least because your family loses someone that they love and during the grieving process there is most likely to be little thought about the financial implications.  However, once that process moves forward there is often a point where bills become part of the process, meaning your family are then trying to deal with the financial difficulties that come up.

Having life insurance means that you can help the people you care about and make sure they are provided for when you die.

Whether you’re a parent, single, married or even heading towards retirement, it’s never too late to get life insurance so why not get a quote today?

 

 

Welcome to What is Life Insurance For?!

Welcome to the new What is Life Insurance For blog, which aims to give you all the facts possible about life insurance.

Whether you need to find funeral cover or you just need to understand what life insurance is and what it is for, we aim to try and give you all the information you need!

In our series of blogs coming up we will be providing articles on what life insurance can be used for, who it is relevant to and what kinds of life insurance are available on the market today.

There are differences between life insurance types and of course your personal circumstances will play a big part in how you choose and buy life insurance.  For some, it could be mortgage protection insurance that is required for a house purchase, or maybe you’re over 50 and are looking for something that can help with things like funeral expenses and support for a loved once should you die.

Whatever reason you have for asking – What is life insurance for? we do aim to give you a series of blogs and articles to help you make your way through the life insurance maze!