It’s a pretty hard topic to talk about, but when you are gone, what will happen to your family financially? Nowadays most families rely on two wages to live a comfortable life. Although even this can be a struggle at times. If one of those wages happened to go overnight, worrying about keeping a roof over your head, bills and food on the table is the last thing on your mind. But there is a way for this worry to not exist and the answer is life insurance.
If you are not sure what instant life insurance is and if you need it, consider these points below.
What is life insurance?
Life insurance has many names. It’s also known as life cover and life assurance. It’s a policy that is designed to protect your loved ones financially. Give them peace of mind. Most life insurance policies are designed to pay out a lump sum to your loved ones if you die. So long as the policy was in place at the time of death. It can help them deal with their everyday money worries such as house bills, childcare costs, or the mortgage payment.
Instant life insurance refers to policies that are quick to apply for and often do not require a medical exam. You can typically purchase such a policy online within minutes of receiving a quote. This type of insurance is designed for convenience, allowing you to get coverage almost immediately after applying.
What is term life insurance?
There are different life insurance policies on the market, one of those is term life insurance. If you are not familiar with this phrase, it is a life insurance policy in its simplest form. This means you pay a premium for some time. It’s best to look at what term life insurance quotes are suitable for you when you are deciding. The time scale for paying out the premiums is between 10 and 30 years. If you die during that time a cash benefit is paid to your family. Unlike permanent life insurance, term policies have no cash value, so no payout after the term expires. It has no value other than as a death benefit. I suppose you could say it’s like a contract.
Why do I need life insurance?
1. Family Dependents
Do you have family who depends on you financially? If the answer is yes. Then yes you do need life insurance cover it’s as simple as that.
If you don’t have children but have a spouse and a mortgage, then it’s also worth considering so the other is covered to pay the mortgage if something untoward happens.
2. New House
To get a mortgage now, you need to have life insurance in place. It’s in the bank’s best interests that there is a way the loan is paid back if someone passes. They need to protect their money and the loved ones left behind don’t have a huge debt to deal with.
3. Funeral Plans
Funerals are expensive. Your loved ones will have to find money from somewhere for this. The average cost of a funeral in 2021 in the UK is £4184. Of course, you can get funeral plans set up in place and may not want your life insurance cover for this, but it’s all food for thought.
4. Inheritance Tax
Leaving your estate to your children when you die, may come at a cost if it’s over a certain value. Which means your children will have to pay inheritance tax. If you wish for them to receive the exact value of your hard-earned estate then an option could be to take out a life insurance policy to the value of the tax bill for them to use and pay the bill.
If you find that you have little to provide for your family after you die, then life insurance will need to be seriously considered.
*This is a collaborative post with Responsival