When it comes to buying life insurance, it can be difficult to say when the time is right - there is certainly no ‘one-size-fits-all’ answer. Is it too soon to take out a life insurance policy? Maybe, maybe not. Is it too soon to start thinking about it? Never. There’s no time like the present to start exploring your options!

It’s really important that any life insurance plan you purchase is well suited to your personal situation - your lifestyle, your finances, and your family, so that it pays out the amount your loved ones need, when they need it most.

This guide will take you through some of the different life insurance options available to you, and help you decide what insurance cover you need to best match your stage of life.

What is life insurance? 

Life insurance pays out a lump sum of money to your loved ones should you sadly pass away. You may have heard of life insurance before, but did you know that there are other insurance covers that can step in earlier and provide a financial helping hand to you and your family should you ever be faced with illness? Products, like critical illness cover and income protection insurance pay out if ever you develop a serious illness or have an accident that means you can’t work. They help to remove any financial stress, covering your bills and other outgoings, while you focus on the important stuff, like making a full recovery.

If you’d like to know more about life insurance specifically, check out our guide which touches on the different types of life cover, including whole of life insurance and term life cover, with additional pointers on when you should think about them.

Do you need life insurance if you don’t have a mortgage? 

It is a common misconception that you only need life insurance if you have a mortgage and that a policy payout should be used only for this purpose. It’s true that many people take out life insurance when they buy a house, giving them peace of mind knowing their mortgage debt would be paid off and wouldn’t pass to their loved ones, should they pass away. But if you don’t have a mortgage, you shouldn’t rule out life insurance, and here’s why! 

Life insurance payouts don’t have to be used to pay off mortgages, they can, in fact, be used however you like! For example, your loved ones might decide to use a policy payout to replace your lost income - helping to cover rent, bills and utilities. They may decide to pay off other debts or even pay for your funeral costs (which might be more than you think!). Essentially, life insurance is there to be a financial safety net for your loved ones during a difficult time, when the last thing they want to be thinking about is the finances!

It’s also worth knowing that while most life insurance policies pay out a lump sum of money, ideal for someone with a mortgage or any other large outstanding debts, you can actually opt for a policy that pays out in regular, smaller payments instead. This is called family income benefit and it might be more suited to individuals that have regular outgoings like renters, or those who simply don’t want to manage a big sum of money. 

Are you a renter? Good news! Some insurers offer versions of their standard life insurance and critical illness insurance products that are designed specifically for you. If you’d like to know more, get in touch with our team of insurance experts on 01392 241 850.

Do you need life insurance if you don’t have children? 

Many parents take out a life insurance policy for the comfort of knowing that their children would be supported if they were sadly no longer around, as their partner would receive the financial help they need to continue caring for the children.

But in reality, most couples share more than just childcare and its associated costs. In fact, they often pool together resources in order to be able to afford a certain lifestyle, which one of them could not maintain on their income alone. If you are in a committed relationship, regardless of whether children are in the picture, you and your partner are likely to be reliant on each other’s contribution to the household expenses and the mortgage. You may also have joint or individual debts that your partner would be left to shoulder alone in the sad event of your passing. So, kids or no kids, if you believe that your partner would struggle to cover the costs that would fall solely to them if you were to pass away, then it may be worth considering life insurance. 

If you’re renting, have no outstanding debts to think about, and have no children, then an income protection policy may be the best option for this stage in your life. Income protection insurance is a product that replaces a proportion of your income in the event of illness or injury that prevents you from being able to work. It helps cover your monthly expenses and maintain your savings, reducing stress so you can focus on getting better.

Do you need life insurance if you’re single?

Yep, you guessed it... it depends! Of course, it’s not only spouses who may need some financial support in the event that you pass away. You may want to use a life insurance policy to help your family members cover the cost of your funeral, for example. 

And thinking beyond life insurance, we mentioned that there are also products that pay out directly to you, if you become unwell. If you’re diagnosed with a serious illness, a critical illness policy could provide the financial support you need to cope with your condition. Income protection insurance, on the other hand, could enable you to maintain your lifestyle if you became too ill to work for an extended period of time. 

With so much to think about and lots of factors involved, deciding on the right time and the right type of insurance can feel a little daunting. But knowing you have protection in place will be such a weight off your mind, so it is well worth investing the time now to understand your options! Speaking to people who know their stuff can remove any stress from the experience. Call 01392 241 850 to speak with one of our insurance specialists today.

Does life insurance get more expensive as you get older? 

No matter what type of policy you go for, the likelihood is that the later you leave it, the more expensive insurance will be. This is understandable, as the older we get, the higher our health risks become. Insurance is there to protect against the unexpected and the more likely that unexpected thing is, the more likely insurers are to need to pay out, so the higher the premiums will be. 

This means that taking out life insurance sooner rather than later is generally a good idea. Your insurance needs are likely to change as you go through different stages of life, however, so if you do decide to purchase a policy when you are young, it might be wise to choose one that offers Guaranteed Insurability Options. These will allow you to easily adjust your policy to suit a change in your circumstances further down the line. For example, you might be able to increase your cover level if you receive a pay rise. 

As a general rule, no matter what your age, you may find that life insurance is less expensive than you think, and there are all sorts of different affordable options out there to consider. Our insurance specialists are on hand to help you find the right policy for both your circumstances and your budget, just call 01392 241 850 for support.

How do I buy life insurance? 

If this article has laboured one point, it’s that when thinking about life insurance there are lots of different options to consider, so it’s a good idea to seek expert advice. Our specialists can help you choose the right policy for your circumstances so that no matter what curveballs life may throw at you, you can feel secure in the knowledge that your loved ones are protected.

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 436 193(Monday to Friday, 9am - 5.30pm)

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