Life insurance is a critical part of your financial planning. It's designed to protect your loved ones in case something happens to you. Without life insurance, your family or loved ones might struggle to make ends meet if you were no longer there to provide for them.

So why leave it to chance when you can secure their financial future in just a few clicks? Here are five benefits of life insurance:

1. Gives peace of mind

One of the biggest benefits of life insurance is that it gives you and your loved ones some peace of mind. You can rest easy knowing that your loved ones will be taken care of financially if something happens to you.

This peace of mind can extend beyond the financial aspect. It can also help relieve some of the stress and anxiety that comes with worrying about the future.

2. Provides financial protection for your loved ones

Not all families have an abundance of savings to fall back on. If something were to happen to you, your family could be left struggling to pay for even the most basic expenses.

Life insurance provides a lump sum payment to your beneficiaries upon your death. This can help ease the financial burden potential affecting your loved ones, providing them with funds to help maintain their standard of living.

It can protect families from the immediate costs associated with a death, such as:

  • Living expenses

  • Funeral costs

  • Utility bills

  • Debt repayments

  • Mortgage debt or payments

  • Medical bills

It can also help ensure that the policyholder’s family or loved ones can continue to live comfortably and maintain their current lifestyle. This financial security can also help alleviate the stress and burden that comes with losing a loved one.

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3. Protects your family's home

For many families, their home is their most valuable asset, however, it can also be their biggest financial burden. If the main breadwinner were to pass away unexpectedly, it could put their family at risk of losing their home.

That's where life cover can become a game-changer. It can help ensure families won't have to worry about losing their home due to an inability to make mortgage payments. Your loved ones may even be able to pay off the full balance of the mortgage, thus leaving them with no debt on the house.

In addition, the money from the policy could provide the financial means to cover other expenses, such as repairs and taxes, associated with owning a home.

If you and your partner share an income, it may be worth looking into a joint life insurance policy. This type of plan ensures cover for two people under one policy. It's often more affordable than two separate policies, paying out after either party dies.

4. Acts as an inheritance for your children

We all want to make sure our children are taken care of, even after we're gone. Life insurance can act as an inheritance for your children, providing them with the financial support to help pursue their dreams.

The death benefit from a policy can be used to pay for their education, weddings, or other important life events. It can also provide them with the means to start their own business or invest in their future.

Note: Though life insurance payouts are considered tax-free, the policy may be liable for inheritance tax. Providing the value of your estate is below the government threshold (£325,000), your policy will shouldn’t be liable for inheritance tax. To keep your policy exempt from inheritance tax, you may want to consider writing your policy in trust.

5. Ensures long-term cover (whole life insurance)

There are two main types of life insurance policies - term life insurance and whole life insurance. While term life policies provide cover for a set period of time, whole life insurance provides lifelong cover.

This means that as long as you continue to pay their premiums, your family receives a death benefit no matter when you pass away. All you have to do is keep paying your monthly premium to stay covered.

For a whole life quote, please call our helpful advisers on 01392 436 193

How Much Life Insurance is Enough?

One of the most important questions when it comes to life insurance is how much cover do you need? The amount of cover you require will depend on various factors, including your income, debts, and financial goals.

A general rule of thumb is to have a policy that covers at least 10 times your annual income. This can help ensure your family has enough financial support to cover any expenses and maintain their standard of living in the long term.

This isn’t necessary or even affordable for everyone though, so be sure to speak to an adviser to obtain a bespoke recommendation based on your circumstances and needs.

It's also important to consider any financial commitments, such as a mortgage. Consulting with a financial or insurance adviser can help you determine the appropriate amount of cover for your specific situation.

Buying life insurance at the click of a button

Getting life insurance through Cavendish Online can be done quickly and easily. Our easy to use online service helps you compare quotes from top insurance providers in just a few clicks. This allows you to find the right cover for your needs and budget with ease. This option is non-advised.

Alternatively, you can get in touch with one of our advisors to get a bespoke recommendation for your circumstances. This route is also best if you have a pre-existing medical condition or high risk hobby/occupation.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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