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Is Life Insurance Worth It?

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These days you can insure everything from your pet, to your holiday, your home or even your left leg! But is Life Insurance really worth it? 

So is Life Insurance worth it? The answer to this comes from another question; Could you afford to maintain your current lifestyle if you or your partner were suddenly gone? In most cases the answer will be no. So is Life Insurance worth it? Yes!

Losing a whole person’s income can have devastating effects on a household both mentally and financially. If you couple that with the emotional strain of losing someone, life can quickly take a downward spiral. Below I explain how Life Insurance can take all this away from the people you love the most.

So why take out Life Insurance?

With a whole host of different insurances available, it’s hard to know which ones will benefit you and which ones may end up costing you a lot, without much gain. Having Life Insurance in place removes all financial burden at an extremely difficult time. On death of your partner, your children or any beneficiary that you nominate will receive a lump sum payout that can be used for anything you need. Make sure to find a no fee insurance broker and advisers who are willing to take the time to explain the different options available to you and your situation.

This could range from paying off your mortgage loan, covering monthly bills, paying funeral costs, to even a holiday to get some rest & distance, investing the money for the future or using it for your children’s education. The list is endless! You insure your car, your home, why wouldn’t you insure yourself? So is Life Insurance worth it? if you have loved ones that will miss you when you’re gone, not just emotionally but in every sense of the word, then yes – protect yourself, protect them.

How do Life Insurance policies work?

Life Insurance policies work very simply, you are insuring your life and so if you die the policy pays out. It’s as simple as that! Certain insurers can apply some exclusions, such as suicide in the first 12 months, but any of these will be made clear by the insurer or broker at the time of taking out the cover.

Pick an amount to insure yourself for: This is called the Sum Assured. You can have as little or as much* Life Insurance as you want. Some people choose the amount of their mortgage loan, some a fixed amount to leave to each of their children, some just have a figure in mind.

Pick a length of time you want to insure yourself for: This is called the Term. The term can be a minimum of 5 years. Some people choose a term that matches their mortgage term, some until their children reach a non-dependant age and some until retirement age.

Pick the type of cover you want: See What type of Life Insurance covers are there? below.

Start your cover: You will need to answer some Health & Lifestyle questions so the insurer can look at your health profile. Based on these answers they will underwrite your application and confirm the premium to you. Once accepted, Life Insurance provides instant protection.

 

What type of Life Insurance covers are there?

There are two main types of Life Insurance you can have. These are called Decreasing Term Assurance and Level Term Assurance.

Decreasing Term Assurance, which can also be called Mortgage Protection, is where the sum assured tracks down over the term of the policy as your mortgage decreases. This means that the sum assured will eventually reduce to nothing, but will always be enough to pay off your mortgage loan entirely.

Level Term Assurance, which can also be called Family Protection, is where the sum assured remains the same throughout the term of the policy. This means that no matter when you claimed on the policy, the payout would always be the same. This cover is perfect if you want to ensure a certain fixed amount of money is left behind if the worst were to happen.

Once you have selected the best cover type for you, you then need to decide if you would like to include Critical Illness Cover.

What is Critical Illness Cover?

Critical Illness Cover is an add on to Life Insurance. Its main purpose is to give those living with the difficulties of having a critical illness some breathing space to overcome it.

Losing someone can be devastating, but being diagnosed with a critical illness can have just as big an impact on the individual and those surrounding them.

Critical Illness Cover insures you against being diagnosed with a critical illness. You can choose as much or as little cover as you like. Some people like to match this amount to their mortgage loan, some to an annual salary amount and some just have a figure in mind.

If you are diagnosed with one of the many conditions they cover, YOU will receive the pay-out which you can decide what to do with. Whether this is subsidising income whilst you get better, paying for specialist treatment, treating the kids to a break away, knocking some money off the mortgage or hiring childcare. Again the list is endless!

Critical Illness has statistically a much higher percentage chance of being claimed on than Life Insurance. It covers a whole host of conditions including the 5 most commonly claimed for conditions listed below:

  • Cancer
  • Heart Attack
  • Stroke
  • Multiple Sclerosis
  • Benign Brain Tumour

You can also include Children’s Critical Illness cover within your policy, sometimes at no extra cost. This pays out a partial amount and doesn’t affect your cover. It’s an awful thought, but if your child did become critically ill, wouldn’t you want to be with them at all times? Whilst you put your life on hold, the payout will help subsidise the cost of living.

How can YesCanDo help you get the right Insurance for you?

Here at YesCanDo we have a team of Insurance Specialists with a wealth of insurance knowledge and many years of industry experience. We are a Whole Of Market broker who can help you select the right cover for you, at the lowest premium available.

We will arrange an initial chat to go over your needs and give you some guidance on the most suitable cover for you. We can answer any questions you have and go over in detail any areas of cover you’d like to know more about. If you would like to talk to us now to talk to an insurance specialist call 02392373235 or alternatively get in touch via WhatsApp.

We will provide you with some initial quotes and options. Once you are happy that you have selected the right cover for you we will then take you through the necessary Health & Lifestyle questions. Because the insurer needs to know your full health profile including medical history, personal habits, family history,etc. these questions can be quite personal! That is why we have various ways to complete these, depending on what feels comfortable for you. You can fill these out through an online link, through an appointment at our office or over the phone with one of our team.

Whether your budget is big or small, if you want full protection or just a bit of protection we will tailor a policy so it exactly matches your needs. What’s the best part? Our service is completely free!! Have a read of our life insurance page or to speak to one of our life insurance advisers call 02392373235 or alternatively get in touch via WhatsApp.

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Steve Roberts
Steve Roberts

Stephen Roberts MAQ is the founder of YesCanDo Money the Hampshire's largest no-fee mortgage brokers. With over 30 years of mortgage experience, he has advised and helped thousands of First-time buyers buy their first home and home movers buy their dream home. Speak to a mortgage expert today by completing our contact form:

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About YesCanDo Money

YesCanDo Money are a local Independent Mortgage Advisor based in Havant. We get to know you and your personal circumstances so that we can provide you with sound financial solutions for your mortgage, life cover wills and everything financial in between.

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