Overview
Planning is not just about growing wealth, it is also about making sure your loved ones are looked after and protected.
Nobody likes to think of the worst, but we can help plan for the future so that, should anything happen to you, your loved ones are protected.
Getting the right life insurance policy means working out how much money you need to minimise the financial impact that your death could have on your family. This sum must take into account their living costs, as well as any outstanding debts such as a mortgage.
Do I really need life insurance?
It may be the case that not everyone needs life insurance (also known as ‘life cover’ and ‘death cover’). But if your spouse and children, partner or other relatives depend on your income to cover the mortgage or other living expenses, then the answer is ‘yes’.
Life insurance makes sure they’re taken care of financially if you die. So whether you’re looking to provide a financial safety net for your loved ones, moving house or a first-time buyer or simply wanting to add some cover to what you’ve already got – you’ll want to make sure you choose the right type of cover.
That’s why obtaining the right professional advice and knowing which products to choose – including the most suitable sum assured, premium, terms and payment provisions – is essential.
Insurance
Protect your most important asset
We insure our cars, our homes and even our mobile phones – so it goes without saying that we should also be insured for our full replacement value to ensure that our loved ones are financially catered for in the event of our premature death.
Life Insurance will help you to financially protect your family. It could pay out a cash sum if you die while covered by the policy. You choose the amount of life cover you need and how long you need it for and you can pay your premiums monthly or annually.
We never know what life has in store for us, so it’s important to get the right life insurance policy. A good place to start is to ask yourself three questions: What do I need to protect? How much cover do I need? How long will I need to cover? This sum must take into account your family’s living costs, as well as any outstanding liabilities, such as a mortgage.
Life events
How much protection do I need?
As you reach different stages in your life, the need for protection will inevitably change. How much life insurance you need really depends on your circumstances, for example, whether you’ve got a mortgage, you’re single or have children. Before you compare life insurance, it’s worth bearing in mind that the amount of cover you need will very much depend on your own personal circumstances, such as the needs of your family and dependants.
What do you need to protect?
- Who are your financial dependents: your husband or wife, registered civil partner, children, brother, sister or parents?
- What kind of financial support does your family have now?
- What kind of financial support will your family need in the future?
- What kind of costs will need to be covered, such as household bills, living expenses, mortgage payments, education costs, debts or loans, and funeral costs?
There is no one-size-fits-all solution, and the amount of cover required – as well as how long it lasts – will vary from person to person. These are some events when you should consider reviewing your life insurance requirements:
- Buying your first home with a partner
- Covering loans
- Getting married or entering into a civil partnership
- Starting a family
- Becoming a stay-at-home parent
- Having more children
- Moving to a bigger property
- Salary increases
- Changing your job
- Reaching retirement
- Relying on someone else to support you
- Personal guarantee for business loans
You never know what life changing event will happen or when, so it’s best to review your personal circumstances as required. To find out more don’t hesitate to contact us.
