Having life insurance is something that we all should consider at some point. Such protection could offer peace of mind and financial security for your family or loved ones. This way, you may rest easy knowing they’ll be cared for when you’re gone.

Understanding when to purchase cover can be key in taking advantage of its benefits. In this article, we will discuss when the best time is to purchase life cover. You can then make a better decision as to how and when to invest in a policy.

1. When you get married or are in a long-term relationship

Upon getting married, or entering a long-term relationship, many couples may not recognise the importance of life cover. But it's essential to consider, in case something happens to either you or your partner. When it's all said and done, couples need to be proactive and think about their future.

One option is joint life insurance - this covers both you and your partner in the event of either of your deaths. A joint policy ensures both parties are protected, even if one passes away before the other.

There are multiple options for joint cover, including term life insurance and whole life insurance. You can either take the policy out to pay upon the death of the first party or the death of the second person.

To discuss your joint life insurance options, please call our advised team on 01392 436 193.

2. When you buy a home

If you purchase a home alone or with someone else, insuring the outstanding mortgage amount  may provide much-needed peace of mind. This is particularly useful if you or your partner were to pass away. A policy payout could help pay off a mortgage, easing the burden of a partner or loved one having to deal with this on their own and could help them keep the family home.

Life cover may also provide protection by covering bills and other costs associated with the home, such as maintenance and repairs. Mortgage life insurance is one way to make sure your family, loved ones and home is taken care of if something happens to you.

3. When you have children or dependants

Having children or dependants can be one of the most significant life events - but also reinforces the need for protection. In order to avoid putting your family and loved ones at financial risk, it’s up to you to take out life insurance.

Life cover could provide a financial future for your children or dependants, ensuring they are supported if anything happens to you. It may also help cover expenses such as:

  • Education costs: helps pay for your child's education if you are no longer around to provide for them.
  • Provide additional funds: provide extra funds for your family to help manage any expenses that may arise in your absence.
  • Living expenses: helps cover day-to-day living costs, such as rent, food and other financial commitments.
  • Funeral expenses: funeral costs can be expensive, so having a life policy in place can help prepare for this eventuality.

Unsure on how much cover you need?

4. When you start a business

Thinking about starting a business, or are you already running one? Then don’t overlook the need for life insurance.

For example, you may want to ensure that the business can still run if you were to pass away. Or you may have business loans that need to be paid off.

You may also want to consider critical illness cover. This may protect you in the event you are diagnosed with a serious illness or disability. It could provide a lump sum that will help keep up with your business costs.

Another option could be income protection. Income protection aims to pay out a regular, monthly amount (usually up to 65% of your salary) if you are signed off sick by a doctor.

To learn more about business protection and the other plans available to you, please visit our business protection page. Or, to speak to an adviser about your options, please call us on 01392 436 193

5. As you enter retirement

As you enter retirement, it’s just as important to consider having life cover in place. This can help provide financial security for any remaining dependents, such as a spouse or children, who may rely on your income should the worst happen.

With life insurance, the policyholder can designate a beneficiary who will receive the benefit payout upon their death. This gives peace of mind and security to those who may be financially dependent on you during your retirement years.

There are two main types of life cover - whole life insurance & term life insurance. Each can provide financial support for your loved ones if you die after retirement, yet they work differently.

Whole life insurance (also known as life assurance) pays out a lump sum regardless of when you die. The payout is guaranteed so long as you keep paying your monthly premiums. Failure to keep up with your monthly premiums may result in your plan being cancelled, and you losing your cover.

Term life insurance covers you for a set amount of time. The policy pays out if you die during the term. If you survive the term, the policy expires and you won’t receive a return on your monthly payments. However, because cover is temporary, term life insurance is often cheaper than other types of cover.

6. If you have debt

Not all debt disappears when you die. Instead, the duty usually falls to your family or estate executors to pay them off. As a result, they may be forced to sell your home or other assets to clear the debt.

Some examples of debt can include:

  • Mortgages

  • Personal loans

  • Credit cards

  • Car loans

  • Overdrafts

To cover these types of debts, you may want to consider decreasing term life insurance, as the cover should reduce roughly in time with the debt you are covering. Because the sum assured decreases, premiums for this type of cover are generally cheaper than level term insurance and remain fixed for the life of the policy.

Get a quote for life cover

At Cavendish Online, we understand that life insurance can seem like a daunting prospect. That’s why we’re committed to providing the best support and advice to customers on selecting the right policy.

Our highly experienced advisers are on hand to answer any questions you may have about life cover. They can also provide guidance as to which type of policy would be most suitable for you. Speak to an adviser.

Alternatively, begin your journey online and get a quote for life cover.

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