Saturday 28th June 2025 is Insurance Awareness Day. We're supporting this by explaining what some of the different insurances are that we can help with and why you might consider them.
Why you might consider life cover...
A change in circumstances can be a motivator to taking out life cover, from getting married, to having children or buying a new home. When we think about protecting those we leave behind, it’s likely to include concerns on how they’d continue to manage financially without us. A mortgage is likely to be your biggest financial commitment. How would they continue to pay that mortgage? Or cover the costs for a funeral? Would they have to sell the house? Without life cover, your partner or close relatives will have to cover that financial commitment or the lender will repossess the property. Life insurance provides a lump sum payment to your chosen beneficiaries should you pass away whilst the policy is active.
Ideal for...
Whilst it’s recommended for anyone who wants peace of mind that their loved ones will be supported financially, there are certain circumstances that perhaps would make this cover a higher priority and an essential financial lifeline for those left behind. Those with a mortgage or debts, and those with dependents.
Good to know about life cover...
Although we’re typically asked to arrange life insurance to cover the total mortgage balance, for those of you with dependents, additional life cover would provide a lump sum to your dependents. A dependent is someone who’d rely on your financial support, such as a spouse, child, or elderly parent. That money can be used for whatever they might need, everything from support with childcare and school fees, to cost of living and paying off debts. We should add that you also don’t need a mortgage to take out life cover.
If you’re taking out life cover with your partner, there are 2 options for you. Joint life cover would insure you both but only pay out on the first death. Dual Life Insurance would insure you both and would pay out on both deaths. You can also combine life cover and critical illness cover rather than taking out two separate policies.
If you’d like to understand more life cover, including the cost, we can provide you with a quotation and offer you advice to allow you to make an informed decision. Call us on 08000 38 37 36 or book an appointment today to talk to one of our advisers.
