With the season of goodwill nearing, now could be the perfect opportunity to consider (or reconsider) the level of life insurance you have in place for you and your loved ones. It might not be something that you wish to consider, but life insurance plays an essential role in protecting your family’s financial future. After all, we protect our homes, cars, jewellery, pets, and expensive gadgets, but when protecting our family and their future, we can be rather blasé about it. Benjamin Franklin once said, “In this world nothing can be said to be certain, except death and taxes.”
Often, a life-changing event steers people towards buying life insurance. Until then, there is a degree of procrastination, with life insurance regularly taking a backseat. There are some serious benefits to taking out life insurance, especially if you have a debt (loan or mortgage), are married, or planning on marriage, have, or are planning, to start a family.
How does life insurance work?
It is rather simple. You pay an agreed premium at an agreed frequency to the insurance provider for the ‘term’ of the policy, and if you die within the policy term, your family will receive a lump sum (sum assured), free from tax.
Do you need life insurance?
One of the most important questions you should ask yourself when considering buying life insurance is this: “will someone in my life be adversely effected financially in the event of my death?” If the answer to this is ‘yes’, then you really must arrange to speak to a trusted adviser on the level of life cover you need.
Life insurance is a big commitment offering profound levels of financial security in the event of death.