Top 10 reasons to have life insurance - Protection Insurance Specialists
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Top 10 reasons to have life insurance

Top 10 reasons to have life insurance


If you’ve never thought about life insurance, or you’re debating the real reasons to have life insurance, there is one certainty in life: anything can happen. Life insurance will be there to protect your family in the event of your passing, or to reassure yourself you’re set for the future by investing in a sound financial plan, but here a few other reasons why you should consider taking out a policy:

1. The best for your kids

Starting a family is a big step and having people that are wholly dependent on us can become a financial worry if one parent passes away. Life cover can ensure your income is replaced, so your children’s standard of living isn’t affected. Also, if you have no other assets to pass down you can consider naming them as beneficiaries that will create an inheritance for them. Moreover, you may not have even thought life insurance could be a way to save for your children’s education – insurance proceeds could help them get through school or pay off the debt of university fees.

2. If you fall ill

Critical illness cover can be included in life cover, whether illness is a worry to you or there’s a family history of illness, we all know the impact that a sudden medical condition can have. Critical illness insurance can help you cope financially if you’re diagnosed with certain serious medical conditions. If there is a pre-existing condition or family history the cost may be higher or cover unavailable. Make sure you check out the options and know exactly what you will be covered for, but once you have it you have the assurance that it can’t be taken away!

3. Buying a house

If you’re looking to purchase a home many mortgages require or urge you to take out life insurance. In the event you passed away during the payment term your spouse/partner may become wholly responsible for the outstanding repayments. If you’re thinking this isn’t financially viable for them to keep up the costs and maintenance without you, you have peace of mind that the life insurance policy would cover your mortgage payments and help pay it off.

4. Funeral expenses

The average cost of a funeral in the UK is upwards of £4,000, would your loved ones be able to afford the farewell you deserve or have planned? Funeral costs can be a stress that Life insurance cover can take from your loved ones.

5. Affordability

You may be apprehensive of getting life cover because of the cost – however it can be less expensive than you think. Of course, the older you are the costlier life insurance can become due to more health risks etc. and term life tends to be less expensive than whole life. But you will be surprised that policies remain affordable if you start out young and healthy – which will lower your premiums. Either way investing is affordable when you consider the future and protection of your family and dependents.

6. Tax benefits and saving

Another way of looking after your loved ones is that your life insurance may provide a tax-free income to your beneficiaries upon your death, helping to relieve any financial burdens. Also, heirs can face a large bill for estate or inheritance taxes, a life insurance policy will help cover these added costs.

7. Pay off debts

Nobody wants to leave their financial liabilities to their loved ones. Life insurance can be used towards any outstanding debts you have, such as credit cards and loans, freeing your family of any hardship they may incur to pay it off.

8. Protect your business

If you own a business, it is paramount you investigate getting life insurance. Whether you’re a sole business owner or have a business partner there are people relying on you. You can cover your business obligations and make sure your company doesn’t go to waste.

9. Donate to a cause

If there is a charity that is close to your heart, or you don’t have anyone to name as a beneficiary you can leave money to a cause you are passionate about.

10. Peace of mind

More than anything else, you should consider life insurance as peace of mind cover. Knowing that your family will not have to struggle financially after you have gone is a happy thought for everyone. Even a small policy will help with any financial struggles and having life insurance will mean the ones you leave behind can continue to live securely.

The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of So Smart Protect or So Smart Financial Services.


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