Insurance is one of those things in life that tends to divide people’s opinions. It seems frustrating to be compelled to pay monthly car insurance premiums and yet make no claims year in and year out.
Of course, this is mandatory, along with house insurance forming part of a mortgage offer, but what happens when the choice is yours? Do you fall into the camp of thinking that insurance is safe to bet even if it goes unclaimed or do you think that it is a waste of money and you would rather deal with things as they arise?
For some people, life insurance may also be a mortgage requirement, or it may just be heavily advised, and if you do not have any mortgage commitment then the onus is on personal choice, so does it matter?
Many people do not like to talk about life insurance, and it is understandably a sensitive subject as you are essentially making financial plans for after your death, and facing our mortality isn’t exactly a cheerful topic. But life insurance is one of those policies that could make a difference to your loved ones. You can see a full explanation of life insurance here including what to look for in a policy and how best to do your research to ensure you get the policy that is right for you.
When it comes to looking for life insurance, you would be forgiven for being slightly baffled by all the options, which is where an insurance broker comes in. They are perfectly placed to help you navigate the quagmire of options and understand precisely what your policy means.
As with most insurance policies related to health, pre-existing conditions are not usually covered. This is another reason why taking out life insurance early on is a good bet.
Most of us are healthy as we are younger and if you have continuous cover from an age where there is nothing particularly medically wrong, you will be able to ensure these things are covered in the future. The later you leave it, the more expensive it will become.
Other factors are taken into consideration like your weight, familial history, and whether you smoke and drink, so it is always worth deciding to take out life insurance sooner rather than later.
Family Financial Protection
The bottom line with life insurance is that you are offering your family a form of financial security should the worst happen. Mortgage life insurance tends to cover the remaining balance leaving the house owned outright by your next of kin.
Other forms of life insurance also cover terminal illness diagnosis, which again sees the policy pay-out, but in this case. At the same time, you are still alive, making it more comfortable if you are unable to work and are facing extensive hospitalisation.
Removing some of the financial burdens from your loved ones and in some cases, you can make all the difference at this stressful time. Of course, nobody likes the idea that at some stage they will no longer be here but, life insurance is undoubtedly one of those policies that ought to be kept up to date.
Even if you do not have a mortgage, you must consider things like loss of salary and other financial burdens that may befall your family in your absence.