Why Consider Life Insurance In Your Long Term Financial Plan

You might like to think that you have every aspect of your finances in order. You might be on top of your mortgage and loan repayments. Maybe you have savings or investments? In fact, your finances might very well be in tip-top shape. 


Your financial plan might appear to be completely foolproof, but without a life insurance policy, have you really covered all bases? 


You see, without securing a life insurance policy, you’re missing the cherry on top of your long-term financial plan and here’s why…


How can Life Insurance improve your financial plan? 


Life insurance can help financially protect the ones you love


Life insurance allows you to put financial protection in place for your loved ones should you die. Wouldn’t it be nice knowing that some things can remain somewhat the same for your family if you pass away unexpectedly?


Life insurance could give you the opportunity to leave a cash lump sum to your family. This means your loved ones might not have to sacrifice the little things that bring them joy. Our Family Life Insurance policy could be the perfect way to help protect your family in the event of your death. And let us tell you, there are plenty of reasons why every parent should look into life insurance. 


It can protect your spouse if you have taken out a joint loan


Do you have a joint loan or mortgage with a partner or spouse? Have you ever considered what might happen should one of you die? The surviving partner is sometimes forced to take on the burden of repayment alone. Unfortunately, this can have devastating consequences in some case.


A life insurance policy will pay-out when you die, the pay-out can be used to cover things like outstanding debts. With our Family Life Term policy, you can choose a term (anywhere from 10-40 years). That way you can put protection in place for the duration of your mortgage repayments. Once the chosen term is up, you will no longer pay monthly premiums and your cover will end. 


It can protect you in the event that you become seriously ill or injured


Life insurance isn’t just there to protect your family in the event of your death. With critical illness cover, you can protect yourself in the case that you’re diagnosed with a serious illness. 

 

Life insurance can help protect against rising funeral costs


According to the Money Advice Service, the average cost of a funeral with a burial stands at around £4,000.  Adding discretionary items like flowers and memorials can add a significant amount to the bill. Do you think your family could pull together that amount of money on short notice? The sad fact is, many families can’t, and this is why so many people are pushed into funeral poverty. Often, whole life policies like our Smart Guaranteed policy are used to help cover funeral costs. 


Making room for life insurance in your budget


Let’s address a common misconception: life insurance is an unaffordable expense.


You might think that there’s no room for life insurance in your budget but there’s a good chance it’s more affordable than you think. 


If you want to work out how to fit life insurance into your monthly budget, you can start by calculating how much insurance you need. It’s all about finding a benefit amount and rate of monthly premiums that suit your budget. You may need to dust off your calculator because you’ll have to sit down and work out your monthly finances. Not only that but you will need to decide how much you want (or need) to leave to your family, and how much that will cost you per month. 


You have control


You choose your benefit amount. You choose how much you pay in monthly premiums. You choose whether or not you want to add optional extras like Accidental Death Cover, Critical Illness Cover or Children’s Cover depending on eligibility. You’re in control and if you need more or less cover at any point, you can always apply to make a change. If your financial situation changes at any point you can apply to alter your policy to meet your needs, all you need to do is call us to apply for a change. 


You can choose additional cover for extra financial protection


With our Family Life Cover you have the option of adding Critical Illness Cover, Child Cover and Accidental Death Cover. Our optional extras enable you to take the level of financial protection you’ve secured up a notch. Here’s how it works...


Children’s Cover will help cover costs incurred from things like medical expenses and school tuition fees should your child suffer a serious injury or illness resulting in permanent irreversible symptoms. It covers bacterial meningitis, paralysis, encephalitis, blindness, deafness, loss of hands or feet or traumatic head injury and accidental death. You are also able to cover financially dependent children under the age of 21. 


This means that if something were to happen to your child, you would have a better chance of handling the cost of their care.


Critical Illness Cover  pays a benefit amount to you should you suffer a defined serious illness. Cancer (excluding less advanced cases), coronary artery bypass grafts (with surgery to divide the breastbone), heart attack (of specified severity), or stroke (resulting in permanent symptoms). You can apply to add Critical Illness cover to your policy if you are aged 18 to 59.


Critical Illness financially protects you during a time when you are seriously ill and cannot work. It can also help you cover medical costs associated with a serious illness. 


Accidental Death Cover  pays a benefit amount from £30,000 up to £650,000 (depending on age) in addition to your Family Life Cover Benefit if you die by way of accidental death.


Life insurance: making plans to protect the ones you love


As you can see, it’s all well and good making sure you’re on top of your finances while you’re alive, but what about when you’re gone? How will those who depend on you cope? How might you pay for potential medical expenses should you or your child become ill or injured? Life insurance acts as an extra layer of financial protection. It’s not just you that benefits from it, it’s those closest to you.