Getting life insurance is an important financial decision that should be approached with care. If you’ve been weighing the pros and cons of getting a life insurance policy, here are some things you should put in your “pros” column.
1 – Bills and mortgage
This is, after all, the main point why life insurance exists. A sizable life insurance payout will allow your family to pay their mortgage and clear out any lingering debt. This will make it easier for them to maintain their current lifestyle and remain financially stable should something tragic happen.
It will also give them time to mourn and recover without having to worry about money. And if you were the only one in the house with a career, this will give your spouse or your dependants time to get the training they need to join the workforce.
2 – Affordability
Life insurance is more affordable than many people think. You can keep the cost of your policy low by getting a policy with a small payout, and by using a site like https://www.insurancehero.org.uk/ to compare prices between different insurance providers. A small policy will provide your family less financial support, but it beats having no insurance at all.
You can also lower costs by limiting how long you’ll be covered. If your children are already around 10 years old, for example, you can get a 20-year policy today and be reasonably certain that they’ll have jobs by the time the policy runs out.
3 – Living benefits
It’s common for life insurance policies to offer various types of living benefits. These are circumstances under which you can receive a partial or total payout of your insurance policy while still being alive. This can happen if you suffer a major accident, are diagnosed with a severe health condition, or if you receive a terminal diagnosis.
And remember, this is money coming from your life insurance, not your health insurance. Meaning that while this money can be used to pay medical bills and experimental treatments, you can also use it to party, go on cruises, or make great memories with your family. It’s up to you.
4 – Flexibility
It’s also worth noting that there is more than one type of insurance policy. Some only last for a few years, while others last for life. And while some policies will only pay out if something happens, others can double as a type of investment or pension fund. This means you will pay for the policy now, but you’ll be able to withdraw some of the money at a later date.
Life insurance is a complex financial product and insurance providers are always coming up with new ways to make this product more attractive. So it’s worth looking into the various types of niche insurance policies available out there.
5 – Age concerns
Life insurance only grows more expensive the older you get, so there is usually no financial incentive to wait to get a policy. For example, getting a 30-year policy at age 35 may cost as much as getting a 20-year policy at age 45. And that’s assuming you don’t develop any new medical conditions in those 10-years — a diagnosis of diabetes will make getting life insurance much more expensive, and such a diagnosis only becomes more likely the older you get.
