None of us want to think about a time when we’re no longer around, so it can be tempting to put off the decision to take out life insurance. However, there are a range of reasons why it may make sense for you to invest in this form of financial cover, and here are three of the most important.
1) Protect your loved ones
First and foremost, think about the financial implications that your death would have for your loved ones. If you have a partner who relies on your income, you’ve got young children or you’re covering the mortgage of your family home, how would your dependents cope if you suddenly weren’t around? You can’t rely on the state to take care of your loved ones. The amount they would receive from the government may be much less than you’d expect. The point of life insurance is to pay your dependants a lump sum or regular amounts if you die to enable them to manage financially.
Bear in mind that you’ll need to find a suitable policy if you want to protect your family properly, and there are a number of options to choose from, including term level cover and whole of life policies. You can find out more about the different options available by visiting the websites of insurance brokers like Chill.ie
2) Cover funeral expenses
Even if you don’t have dependent family members, you might still want to take cover out to ensure that there is enough money to meet your funeral expenses. Bear in mind that the cost of funerals has risen considerably over recent years. According to research conducted by the University of Bath’s Institute for Policy Research, the average cost of a funeral has increased by 80 per cent over the last decade and they can now cost over £5,000. By taking out insurance, you can make sure that your family members aren’t left covering these expenses.
3) Boost your peace of mind
More generally, taking out life insurance can provide you with added peace of mind. Knowing that you have made financial provisions for when you pass away can give you more confidence and, once you’ve put the policy in place, you won’t have to worry about this issue unless your circumstances change and you need to update your cover.
OK, so thinking about this form of financial protection may not be pleasant, but as these points highlight, it could have big benefits for you and your family.
Disclaimer: This is a collaborative guest post, it is not intended to be legal or financial advice. Always seek independent advice.