Is life insurance a good idea?

22 February2021

The advantages of life insurance probably only hit home when you start to think the unthinkable: What would happen to your family in the event of your death? Although most of us sail through the early part of our lives naively assuming that death is what happens to 'other' people, a job loss or accident can highlight how dramatically a family's finances are affected when the main breadwinner is out of action, or worse still, out of the picture.

The simple way to assess whether life insurance is a good idea for you is by looking at what costs your family would be unable to cover should you die. If you have a mortgage, how much would they need to pay it off? What other monthly costs would you need to cover to safeguard your family's future? Perhaps you want to provide a cash lump sum to pay off debts, go towards your children's university fees or, if they are younger, provide childcare provision so your partner can continue working.

Even if you have no dependants, certain forms of life insurance can help you maintain your commitments in times of crisis and cover the cost of medical care in the event of critical or terminal illness.

How much does life insurance cost?

The cost of life insurance is dependent on several factors: The amount of cover you require and your age, state of health, gender and lifestyle. 燭he lower your perceived risk of death, the cheaper your life insurance will be. Of course, the more cover you take out the better the payout will be when you die, but even a little life cover is better than no life cover at all.

How do I get the right life insurance?

The best way to buy life insurance is to calculate the amount of cover you need and then get life insurance quotes based on this. If you're looking to pay off a mortgage, the 'term' (length of time the insurance runs for) is also a consideration: It could be based on how many years are left to run on your mortgage or how long it will be before your children are likely to become financially independent. If you're single with no dependants, your life insurance could be designed to cover your monthly commitments in the event of a critical illness preventing you from working.

Because there are so many types of life insurance available, it's always best to speak to an insurance agent so you can consider the options available. Because each insurance provider has different ways of calculating the monthly premiums, your insurance agent will compare different policies on your behalf to find the best cover with the lowest premium (monthly payment).

Let Think Insure help you get a great deal on your car, home or life insurance

Call us for a quote on 0800 195 2914.

Or fill in your name and number and we'll call you back for free.

Tags: life insurance, good, idea, good idea, is life insurance

Subject to eligibility and exclusions. Insurance is provided from our panel of insurers. Policy conditions apply. Calls may be recorded for quality and training purposes. Calls to 0800 numbers from BT landlines are usually free, but you should check with your network provider for full details of your service.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.