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.
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.
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.
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.
Call one of our experts on 01392 241 850 for a helping hand.
Best value provider of financial services
We achieve this value by charging a small fixed fee or a reduced commission and have consistently been voted the country's best value provider of financial services products