There comes a time in your life when you need to grow up a little and focus on things that need your attention. Things like your future. Getting mortgages, buying property and investing in your future is one thing, but what happens when you are no longer around? Who cares for the family and provides? This is when considering things like life insurance could come in handy.
Life insurance is a policy that you pay into that will provide a lump sum to your family in the event of you passing away. These tend to come in handy to help your family pay bills and the mortgage. Especially if they rely on your income. It is designed to provide you with the assurance that your dependants will be taken care of when you are gone. So when do you need to consider life insurance? What kinds of questions do you need to ask yourself?
Does your family rely on your income being the main one into the household?
Many families have the main breadwinner. The person that earns more and covers the majority of the bills. In some instances, people earn the same, but it’s rare not to have one salary outweigh the other. Other circumstances could be a parent that stays at home to look after the children. That would be a family that relies solely on that one income. So what happens when that income disappears? This is where having the assurance of life insurance can help.
Have you considered the job you do?
Let’s face it, some of us have more dangerous jobs than others. People can be putting themselves at risk of harm everyday just by heading to work. Careers like working with the police can be specifically risky. There is an air of the unknown in that job. What call out will you get today? Who may you become in contact with? While incidents can be rare and random, it’s always worth considering whether your job puts you at risk. This is where considering life insurance could be worthwhile. Checking out websites like http://www.genesage.com/occupations/police-life-assurance could provide you with some indepth information. However, the question you really need to consider is that whether you’re at risk anyway? Driving to work each day poses a risk. Who know’s what that journey would entail? Sometimes it’s good to have the reassurance there.
Have you got a property that is mortgaged?
Whether it is a rental income property or the family home, do you have commitments to a mortgage? If the answer is yes, then it is definitely worth considering a life insurance policy. What you have to consider is that those payments will still need to be made. Whether there is an income coming in or not. This is why insurance policies such as these can take that additional worry away. If you are unclear about mortgages then this website may help you https://mortgageadvisers.which.co.uk/faq/.
Have you got a long term illness?
Sometimes we fall ill. These can be long term things. This is where a specific policy could be worth taking. It’s worth pointing out that many life insurance policies will not pay out if the cause of death is self inflicted. Things like drug and alcohol abuse will not be tolerated. However, if you are ill at the time of taking out a policy, you will need to declare it. Some mainstream policies may exclude payout if death is caused by that illness. Whereas others will be more costly but will cover you. Make sure you do your research and read the small print. Don’t be tempted not to be upfront with things like this; you run the risk of making your whole policy invalid.
Are there different types of policies?
There tend to be two different types of policies you can obtain. You can either pay into a fixed term policy. Which will run for up to 25 years. However, these policies will only pay out if you pass away during that period. You may want to consider a whole-of-life policy. This is where you will receive a payout whenever you passing occurs. As long as payments have been met.
Is there a time when you don’t need a life insurance policy?
Some employers offer a death in service policy for many members of staff. So it is always worth checking your contract to see if this applies to you. They will normally cover multiple of yearly salary. Depending on your agreement, the length of service and employee benefits. Sometimes it’s worth weighing up whether a policy is worth paying into, if your death in service benefit covers everything you need.
I hope this has helped you be more aware of what life insurance is all about.