Why do I need Life Insurance?
Life insurance is one of the most important forms of insurance sold anywhere in the world, but every single day thousands of people will ask themselves the question, why do I need life insurance?
At LifeInsure.co.uk we get asked the question every day and it’s a great question. Your initial thoughts may be, I’m dead, who cares what happens next. It’s only when you start to think a little more carefully about the implications of an early death that you start to realise that life insurance could actually be really important, especially for your family.
Life Insurance is sold in many different forms, all which offer levels of cover for your family for different amounts of money. The amount you pay will generally decide how long your cover will last for, with whole life insurance covering as customer for their whole life, but costing substantially more than term life insurance, which covers customers over a certain term.
That term however, will be their period of greatest financial responsibility, usually when they have children at home to support and a mortgage to pay. The easiest way to work out whether you need a life insurance policy is to imagine you were to die tomorrow, and no longer earn any money to provide for your family.
Ask yourself who would pay the mortgage, as well as the bills, and even if you don’t work, who would pay someone to carry out the tasks you do around the home and looking after the family. Many families have two people working to contribute towards the bills, or one working and one looking after the children. With childcare costing around £50 a day, or £1000 a month could the earnings of one person cover the childcare costs, and all the other bills?
If like the vast majority of families in the country the answer is no, then you really should take out life insurance. The money you leave behind from a life insurance policy can be used to pay off the mortgage, as well as to provide enough money to pay for childcare, or for household bills when you are gone.
It’s a great way to make sure your family are protected if the unexpected happens, and will allow you to sleep with peace of mind that if the worst was to happen, financially at least they’d still be looked after and would be able to afford to stay in the family home.