6May2020

Reasons to buy the best life insurance policy

When considering the financial options of life insurance, it may appear to be a step too far. For many people, having the best life insurance cover is a foregone conclusion. If you are a security-conscious breadwinner, you will know that a life insurance policy is an essential financial safeguard for your dependants, immediate family and loved ones. 

What sort of life insurance do I need?

The range of life insurance policies on offer may appear baffling, and obtaining good advice is essential. If you are ready to discuss what is the best life insurance policy, scroll down and click the button to speak to a friendly, non-pushy advisor and discover your options.

However, we can look briefly at common preferences and levels of cover available to you to ensure you obtain crucial financial protection for dependants in the worst-case scenario.

From single to joint policies, cheap life insurance to whole of life policies, the range of protection plans is vast enough to suit every individual or couple.  

Consider a term life insurance fixed to cover a specific period, for example, the duration of a mortgage. Alternatively, the most popular life insurance policies include cover for critical illness with flexible plans offered by well-respected life insurance companies. Their aim is protecting individuals when devastating illnesses prevent them from earning a salary. 

Common conditions including cancer, heart attacks, strokes and multiple sclerosis form the basis of most claims. Therefore it is easy to envisage why individuals want to cover yourself for critical illness, having a policy ready if you need to make a claim for one of these life-changing situations.

Our trusted advisors can advise on how much cover you should take out, whether it is whole of life, fixed-term life insurance, critical illness or a combination of policies. It is often surprising, going through monthly outgoings, totalling up the mortgage payments, loans, savings, utilities, shopping and the little extras that add up without us realising. Things like piano lessons, football kits, school shoes and the like.

Equal-earning couples are both breadwinners

Most fundamental is keeping a roof over their heads. In the unfortunate event of the main breadwinner or, increasingly widespread, the equal-income couple whose joint income is necessary to financially sustain the family. One will ultimately suffer in the event of halving that monthly income due to premature death. Striking the right balance is crucial, as the higher the benefit of the life insurance policy, the higher the monthly premiums. Hence, while it is tempting to over-insure, doing so may put a strain on the family finances.   

Life Insurance Cover calculations

Take the time to sit down with pencil and paper and make a note of the vital elements of the family’s finances. Calculate as follows:

  • How much of your mortgage is outstanding?
  • How much is outstanding on debts, including personal loans, credit cards, and car loans?
  • How much is necessary to help with the children, for example, childcare costs, college funds, clothing and activities? You may wish to help them until such time they are financially independent.

Totting up the figures will give you an approximation of the basis of total life insurance cover required, ensuring your loved ones can wipe the slate clean.

If your family were to lose you, the grief would be one thing to deal with. With the additional possibility of losing the family home is one heartache, you can help them avoid. 

Ensuring you have enough life insurance to clear the outstanding sum owed on the mortgage will help ease the strain.

Another element to consider is funeral expenses – the average cost of a funeral in the UK is £4,000, and this figure is rising annually.

The team at Life Insurance Cover is dedicated to supporting and guiding you with life insurance policies and advising on quotes. We can tackle just about any question you throw at us!

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