Life Insurance Isn’t For You. It’s For Those You Leave Behind.
There’s “still plenty of time” to think about protecting your family’s future.
Until it’s too late.
Consider these grim statistics:
- Around 1,500 people die in Britain every day, and nearly half of those deaths are unexpected.
- One in every 20 British children loses a parent before they’re finished with school.
- Almost ten million UK households have a mortgage, but about 40% have no life insurance protection for the debt.
Life insurance can be a godsend for those suffer tragedies like these. Sadly, those whose head of household figured there’s “still plenty of time” to worry about insurance may face an uncertain future: loss of their family income, loss of their schooling, loss of their home.
Most decisions in life can safely be delayed. Purchasing a life insurance policy cannot. Once you have loved ones depending on you, it’s impossible to know if there’s “still plenty of time.”
Are you covered? If not, here are five reasons why it’s crucial to act now. Or simply go and fill in our short form to get a free no obligation life insurance quote.
1. Income replacement: Even in today’s difficult economy, approximately 25% of all British families with children – more than 1.5 million – have just one earner. In many more, the second earner contributes just a small portion of the family income.
If you’re the sole or major earner in your family, what would happen to those left behind if the worst should occur? Perhaps your spouse or partner could take a full-time job – but that still leaves important questions.
Would they be emotionally ready to work full time? Could they earn an amount which would maintain your family’s standard of living? What would happen to your home? Who would take care of the children?
Adequate life insurance provides just one answer to all of those questions – a satisfactory one. Insurance proceeds would replace your income, ensuring your family’s security, stability and future.
2. Final expenses: Burials have become big business for the UK funeral industry and a huge expense for families.
The average funeral now costs around £3600, about half for the funeral director’s services and half for disbursement costs such as burial and minister (or celebrant) services. Those numbers don’t include other customary costs such as death notices, flowers, the costs of a wake or funeral reception, or a memorial headstone; those can be an additional £1000 or more. Add in family transportation expenses, unpaid bills, probate and the like and you could be looking at an immediate cost of £5000-£10,000 facing your family, should you pass away unexpectedly.
Will they be able to cover those costs? Will they have to seek aid from the Social Fund?
Even a modest life insurance policy would provide a dignified funeral and mourning period for your family.
3. Mortgage protection: A family’s life – especially for children – is often defined by where they live. Being required to move, particularly to a lesser home, is a terrible trauma in itself. It’s even worse when added to the shock of losing a loved one.
If you were to die, could your family afford to meet the mortgage payments necessary to keep their home? Or would your wife and children have to suffer the dual traumas of losing you and the house in which you were so happy together?
Many lenders offer (or require) mortgage holders to carry life insurance; however, the policies offered by brokers or lenders are often much more expensive than those purchased from professional life insurance companies.
The amount needed to pay off a mortgage can easily be added to a more complete policy, not only keeping your family in their home but providing them with the money they need to live comfortably.
4. Protection against inheritance tax: Aside from “there’s plenty of time,” another common fallacy is “My family certainly doesn’t have to worry about inheritance tax!” Think again.
True, the “nil rate band” before IHT hits is £320,000. But that’s around the same value as a home in greater London. If you own a nice house, cars, jewelry and other possessions, you could easily be looking at an estate valued at £500,000 – and your family could be looking at a hefty tax bill of £70,000.
Could they pay it? Or might they have to sell that nice house in order to pay the taxman?
A sufficient life insurance policy could save your family from a terrible decision like that, protecting not only their home but also the proceeds of your insurance, and allowing them to move forward without financial difficulties.
5. Protecting against future inflation: Some people believe that they’ve saved up enough money to care for their family, should something happen to them. Others believe their parents or siblings have enough to help fill the gap.
The problem is that your family will have many years left should you die unexpectedly, and prices will continue to rise throughout that time. It’s estimated that £1000 today will only be worth about £642 thirty years for now, even if you assume a moderate inflation rate of only 3% per year. If you believe your savings and investments can support your family throughout their lives, were you calculating based on today’s prices, or the prices they’ll be facing in 2045? (And don’t forget that the cost of a typical three-year university degree is now over £25,000 per student, and will continue to rise over time).
Anyone concerned about the well-being of their family must realize that there really isn’t “plenty of time” – because none of us knows when our time may be up. If the worst were to happen tomorrow, would your family’s income, home and future be protected? If not, the time is now to take care of the issue, by protecting your loved ones’ well-being with life insurance.
How to afford life insurance + where to get the best policy
To find money for your £10 – £30 per month, you don’t have to work harder – just take money from somewhere else.
If you currently have two streaming services (like Netflix and Now TV), cut back to one. Eat out one less time per month (you’ll get better at cooking, anyways). Etc.
If you’re just scraping by, stuff like that will allow you to afford life insurance without it becoming a financial burden.
Don’t lose this opportunity – head over to our homepage, and fill in the short form to get a free no obligation life insurance quote. We’ll compare the leading UK insurers for you, and match you up with the one that can give you the highest payout at the lowest monthly cost.
Good luck – it’s really not hard to get started, and just as we discussed, the peace of mind – as well as the other countless benefits for your family – both make life insurance more than worth it.