Do I need life insurance?

None of us like thinking about our deaths, but when we get married or have children our responsibilities in life grow and we begin think about how our loved ones and dependents would get on if we were not around.

Life insurance plans pay your family a set amount to ensure their financial security if you were to die suddenly. It will not make up for the emotional pain but at a time when work, bills and other financial necessities seem unimportant, the payment can be a huge help.

If insurance is really about peace of mind, then this is the ultimate policy. The money can be spent however your family sees fit but it will most likely go towards major outgoing like funeral expenses, mortgages or school fees.

Whole life insurance covers a policy holder for the rest of their life so is the most expensive option as the insurer knows they will pay out eventually. However, many young and healthy adults decide against life insurance because the premiums can be expensive and the risk of death seems understandably remote.

However, in unfortunate circumstances that decision can leave young families – who tend to be on less steady ground money-wise – facing financial hardship.

Term life insurance is a way of not spending too much on cover that is likely not to be used. You buy cover for a certain number of years and the insurer does not pay out anything if you die once the policy is expired.

Our homes are likely to be the most expensive things we ever buy, and with house prices so high there are very few of us who can avoid taking on significant mortgages to buy them.

If you were to pass away would your family be able to continue repaying the mortgage? If not, mortgage protection life cover can be one of the most useful insurance policies you ever purchase. In the event that the insurer pays out the money goes straight to mortgage lender.

Critical Illness Cover Life insurance is invaluable to our families when we die, but it is an unfortunate fact that many of us will go through a prolonged period of serious illness before passing away. A stroke, cancer and illnesses which require round-the-clock care are not just emotionally devastating but can be financially devastating too.

Critical illness insurance provides protection against financial hardship by paying out a set lump sum when an illness is diagnosed. You and your family are able to spend the money on treatment, care or any other way you see fit. You can buy separate cover or bundle it with your life insurance or mortgage protection life cover.

If your family responsibilities have recently increased you may want to consider buying or amending a life insurance policy. It is important that you make the right decision and if you are unsure you should always consult and independent financial adviser.

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