Don’t undervalue your life!

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Most of us know the importance of life insurance. Yes, it’s not the most pleasant of topics – but it could help secure your family’s financial future.

Many people are unsure of how much cover they actually need, or fail to update their level of cover so they have sufficient protection in place.

There are key times in your life when you may want to consider such cover (if you haven’t already) or update any current policy you may have to give you a higher level of financial protection.

Buying your first home

Once you take out a mortgage, you’ll then be committed to ongoing repayments to pay off the loan. You may want to consider life insurance when you take out a mortgage, so this debt could be managed in the event of your death.

If you and your partner both contribute to paying for a joint mortgage, it’s important that you’re both covered, so one of you is not left struggling to pay repayments on your own.

Decreasing term insurance will broadly reduce in line with your mortgage. As you pay off your mortgage debt, the sum you have insured will also decrease (as will your premiums).

Or buying a bigger home…

If you decide to upgrade and take out a larger mortgage for a bigger property, remember that you may need to boost your cover.

Co-habiting and marriage

It’s quite possible that you and your partner share financial burdens and rely on one another financially to meet day-to-day living costs and general household expenses. Perhaps one of you currently takes care of all your shared financial commitments and supports the other.

Consider life cover to help make sure your partner would be able to cope with ongoing financial necessities if you weren’t around.

Having children

This is the biggie. Once you have children, you suddenly have financial dependents. Especially if you’re the sole earner in your family, life insurance could help ensure all your dependents remain financially stable if your income was no longer there.

Take any childcare and education costs into account when you’re calculating the amount of life insurance to take out.

Career developments

Salary and lifestyle often go hand in hand. If you get promoted or get a new job with a higher salary, it may be wise to check your life insurance. If you take on more financial commitments, you may need to have more protection in place.

Also, check any benefits that you lose or gain in the process of changing jobs. Death in service is often offered by companies and would pay out should you die while working in your current role.

Although this shouldn’t be seen as a substitute for life insurance, as it may not meet all your needs, it’s worth checking if you have this and how much (usually based on your salary) it would pay out.

Policy Expert

Our customers are at the heart of everything we do, so we have a team of experts with a real passion for making sure people get the cover that’s right for them. To speak to one of our experts, call 0203 014 9300 or email ask@policyexpert.co.uk

The views expressed here are solely those of the author and do not necessarily reflect the views of Policy Expert.