If you have other people who depend on your income and you don’t already have life insurance in place, it’s important that you consider taking out a life insurance policy as soon as you can, regardless of whether you have a mortgage or not. 

However, even if you don’t have any children and you’re renting, life insurance can still provide valuable financial protection, should the unthinkable happen to you or your partner.

Nobody knows what the future holds, but everyone knows what and who’s important to them.

Consider if you were to pass away, what would the financial impact be on your partner? (and vice versa). Not just the loss of household income, but also things like funeral costs. Where would the money come from?

If either of you would struggle to pay for any of this, then life insurance may be worth considering.

Generally, people who have mortgages and dependents are far more likely to have a life insurance policy in place, however some insurers offer cover that’s designed specifically to the needs of tenants. These policies pay out a monthly benefit, which could be used to effectively replace the policyholder’s income to cover this regular outgoing.

If you’re currently renting, ask yourself the following questions to understand whether you should consider Life Insurance:

1. What would happen if you (or your partner) were to lose their income for a few months?

2. If you (or your partner) were to die, how long would any savings you (or your partner) have last the surviving person(s)?

3. Are you considering, or currently saving up for a deposit for a mortgage?

Protecting Your Income

Thinking beyond life insurance, It’s certainly worth considering an income protection policy. Injury or illness can happen to anybody, not just homeowners and those with children.

An Income Protection policy is designed to pay a monthly benefit to you to support you if you cannot work because you are ill or injured, but don’t typically include cover for redundancy.

It pays a percentage of your gross salary (or take-home pay).  There are short term policies, also known as budget Income Protection, and long term policies, also known as full Income Protection.

Income Protection is there to support you in your time of need however it is not designed to make your financial position better if you are not able to work,  with restrictions in place on how much cover you can have. Therefore the money from these policies can help to cover your rental payments, while also maintaining savings and keeping you on track for your house deposit.

What about critical illness?

Critical Illness is a policy designed to pay a lump sum to you directly should you be diagnosed with an illness that is on your provider's specified list of conditions covered (you’ll need to meet your chosen provider's definition of the illness in order to make a claim).

Some providers will also pay out a smaller lump sum, known as a partial payment, should you be diagnosed with a critical illness which meets the providers definition. Typically, these partial payments do not impact on your overall sum assured.  

These policy benefit lump sums can be used however you see fit, for example to help cover rental payments,  repay debts such as a mortgage or towards altering or moving to a property, should you need to.

Remember, not all conditions are covered, and each provider has a different amount of overall conditions covered within their policy. The ability to claim on a Critical Illness policy is not based on your ability to work, but meeting the criteria set out by the insurance provider as specified on the inception of the policy.

Depending on your situation and budget, the most suited provider for your needs can vary. It’s important to understand the comprehensiveness of a policy is not always linked to the premium. In addition, where one provider may place exclusions on an existing condition or increase the premium as a result of it, others may not.

If you’re renting now, are you looking to get a mortgage one day?

Saving a deposit for a house requires dedication and prudent financial planning. Making sure your income and savings are protected should the worst happen should be factored in as an important part of your planning too.

When it comes to buying life insurance online, income protection or critical illness cover - the younger you are, the less expensive it will generally be. 

It’s also worth bearing in mind that if you’re at the beginning of your financial journey, there will be lots of changes that will  happen over the coming years. As these changes come, so will your insurance needs. 

Whatever your situation, there’s always no better time than now to take out life insurance cover, so speak to Cavendish Online today who can help guide and support you in choosing the policy that best suits your needs.

Get A Quote Online Today

Once you’ve given this information some thought, it’s then really easy to arrange and compare life insurance online.

Simply enter your details into our site and we’ll ask some questions to generate quotes so you’ll be able to see what policy works out best for you.

Prefer to phone?

Sometimes, it’s easier just to give us a call and speak one-to-one with one of our insurance specialists, who can guide you through the process and support you in choosing the best cover for you and your family. 

Call us on 01392 241 850 today.

Get In Touch

Cavendish Online is committed to ensuring our fees and charges are highly competitive and transparent - so you know exactly what you are paying for when you use our different services. 

We can help you find the most suitable (and affordable) option for your individual circumstances, so we seek products from leading financial service providers - with minimal charge amounts. To find the best policy for you, we won’t limit your search to just one company.

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For more information and to get a quote please call us on:

03456 44 25 40

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