It could be that you’re in your twenties and feeling in the prime of your life. You could be in your forties and with a family, or in your sixties and thinking about retirement. In any case, you’re never too young, too old or too busy to think about life insurance, as it could provide some very useful help when you most need it.
Helping out other people
Life insurance isn’t about you. It’s about other people. The purpose of getting life insurance is to ensure that your spouse, dependents and loved ones aren’t left in a financially precarious position should something happen to you. The payout from a life insurance policy allows your family to help pay off any outstanding debts and it leaves a legacy for your loved ones. Even if you have no one who you would call a dependent, a life insurance policy allows for you to have some money to put towards your funeral costs. If you’re in two minds about getting life insurance, ask yourself how others would cope financially if you weren’t around before you make a decision.
Your biggest debt, covered
One of your biggest debts is likely to be the mortgage for your house, and it’s also one of the longest debts to pay back. If something were to happen to you before the mortgage was fully repaid there is a chance that the house could be repossessed should the repayments stop. Luckily, there is a specific kind of life insurance that protects your mortgage so your family have one less thing to worry about. The benefit of this mortgage life insurance is that the amount of payout decreases as time goes on in line with the reduction of your outstanding mortgage. This form of decreasing term life insurance tends to be cheaper than other forms of life insurance policy.
Preparation is half the battle
Of course, you might not be in a position where you gave a mortgage or would need to protect it, so you think there’s little need for life insurance. You figure you’ll wait until later until you need it. The problem is that life doesn’t work like that, and unless you’re gifted with a sixth sense you won’t really be able to predict when you’re going to need life insurance. Illnesses and accidents aren’t exactly considerate when it comes to appropriate timing, so being prepared for the worst will help you out if the worst should happen. Taking out a life insurance policy while you’re younger usually results in relatively lower premiums than if you took one out later on in life.
There are a number of specialist life insurance policies that are available to you depending on your circumstances. From your mortgage life insurance policies that take care of your biggest debts, to critical illness cover that helps towards your recovery costs if you are taken seriously ill, there’s something out there to suit everyone. Don’t be late to the party, and find out what works best for you.