01 Sep 5 Reasons you need life insurance
What is life insurance?
Life insurance is not something that is easy to talk about . It’s not fun to talk about and it’s
definitely not a process anyone enjoys. However, much like death and taxes, buying life
insurance is an essential part of life and a crucial element of sound financial planning. Life
insurance in short is insurance that covers your life. In the event of your passing it can pay your
dependents money as a lump sum or as regular payments if you die. It’s designed to provide you
with the reassurance that your dependents will be looked after if you’re no longer there to provide
Why you need life insurance
Insurance can be confusing at the best of times but when it comes to life insurance it’s hard to know
what you really need or want. A statistic from the Scottish widows recently revealed that 50% of
Mortgage holders don’t have life cover ( SOURCE – On clicking the above links you will leave
the regulated site of Nepcote Financial Limited. Neither Nepcote Financial Limited, nor
Sesame Ltd, is responsible for the accuracy of the information contained within the linked
site). You don’t want your spouse, parents, children or other loved ones to be left with any extra
financial burden when you die.
We’ve put together 5 reasons why you should have life insurance to highlight the importance of life
• To be Financially secure and pay the bills if you were unable to work due to illness
Unfortunately in the event of illness you may be unable to work and therefore you will be left without your usual income. With certain life covers they can provide income to cover everyday living expenses.
• If you’re a business owner
What would happen to your business if something were to happen to you? Do you have a
succession plan? If you a business owner and do not have a succession plan, speak to a
financial advisor to get you on track to help you create one.
• To repay a Mortgage if you or partner were to die.
Your family will need insurance to cover any outstanding debts like the mortgage. You don’t want
your spouse, parents, children or other loved ones to be left with any extra financial burden in
addition to the emotional burden they’re already suffering.
• To protect dependents financially if you were to die, have a critical illness or be unable to work due to incapacity.
Whether it’s your children or partner, you’re likely to have someone that depends on you financially to support them, life insurance is incredibly important, because it replaces your income when you die meaning that your loved ones will be supported and not left in financial trouble. Whilst this is important for all loved ones, it is especially important for parents of young children.
Do you need life insurance?
You should have life insurance if the following applies to you:
•Dependants, e.g. school age children
• A partner who relies on your income, or A family living in a house with a mortgage that you pay – a life insurance policy can provide for them if you die.
You might also want a policy which covers your funeral expenses.
You can’t rely on the government to take care of your family – the money they would get from the
state is much lower than you’d probably expect.
If you want to provide for your family financially if you die, think about getting life insurance.
If you haven’t already got life insurance and are wondering where to start get in contact with Nicola,
our specialist protection advisor and find out how she can help: 01903 251053 | nicola@nepcote