Do I really need life insurance?
When offered life insurance the usual reaction is ‘no, not now I will think about it later.’ The sad fact is that later might be too late. Thinking about life insurance should be a priority and it is a good time to think about it when you first take out a mortgage because a mortgage will usually be your biggest financial commitment in your life. It is important you have protection in place to support your family in the event that any tragic circumstance arises.
What can happen if you do not have life insurance in place?
Well….. if mortgage payments cannot be kept up for whatever reason-then the mortgage lender can re-possess your property and take the proceeds in this way. By having a life insurance policy in place you will be protecting your mortgage and your family in the future. It will guarantee that much valued peace of mind.
Another thing to think about is when you should apply for life insurance. We have already said that it should be applied for when you take out a mortgage. But did you know that the younger you are, the cheaper the premium will be as you will hopefully be classified as fit and healthy. In this way, you can fix a great rate of premium for the whole term of the policy. This is a great advantage.
There may be other doubts in your mind….
I have savings – this will cover me. But what happens when those savings need to be used for other purposes and will not be there for you when you need it most?
I have no dependants – but what would happen if you were unable to work due to an illness or an injury? You will need protection for this. You also cannot ever rule out marriage and kids.
I set a life insurance policy up a long time ago so I do not need to look at this now. Things change rapidly in the life insurance market. You will need to review your cover regularly and most certainly there will be a better deal on the market. It is also important to know that the cost of life insurance has gone down over recent years and you could currently be paying too much.
I have cover through my employer or my family will help me out. Well- you will need to check what cover you do have as it may be limited and may not pay out as a life insurance policy would do. This is the same for family-would they be able to provide you or your family with all you need in the case of an unforeseen event. You will need certainty.
As you can see whilst life insurance is not compulsory, it is highly recommended to provide you with security and protection.
Finbud will help secure the best life insurance policy as we have access to the whole of the market and we will ensure that you have the best deal in line with your mortgage.
