Why is life insurance important?

13 February2021

What would your family do if you were to pass away? Would they be able to maintain their standard of living, covering the mortgage payments and paying the bills? That's what life insurance is designed to help with.

If you have a life insurance policy in place, your family can receive a 'benefit' (i.e. a payout) when you die. This payout could really help them cope with costs of living that could otherwise be very difficult to afford.

Is life insurance really important?

It could be extremely important if the worst does happen. Nobody knows what the future holds - and life insurance could provide your family with a very valuable safety net at a relatively low monthly cost.

If you have a lot of money in savings, you might feel life insurance isn't necessary. But in terms of how much you pay each month compared with how much your family could receive, it could make very good financial sense.

How it works

Basically, you make monthly payments - and if you die while your cover is valid, your family will receive a payout.

When you purchase life insurance (also known as life assurance), you'll be asked how much cover you want (i.e. how much your family would receive). This will affect how much you'll pay on a monthly basis, and so will your personal circumstances such as age, gender, occupation and current health.

However, all life insurance policies come with their own terms and conditions. There are certain illnesses that may not be covered, for example, so it's well worth doing your research before you take out any cover.

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, insurance, important, why, why 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.