Karolina Grabowska
Ever wanted to know why a person may need life insurance? Are you at the stage in your life where you think you might need it but you’re not convinced whether it’s actually necessary? Come along as we explain the basics of getting a premium and the benefits that this kind of insurance cover brings.
Purchasing Your Home
Congratulations you managed to scrape together enough for a deposit on a mortgage. If one half of a couple gets hit by a bus, then it leaves the onus of the mortgage on the partner left alive, and if both pass away the onus is left with the next of kin, meaning that the house is generally sold and the amount is used to settle the mortgage. If you have a life insurance policy that pays out upon death, then that means that your loved ones aren’t left in the lurch should you pass away unexpectedly. Wouldn’t you like to give your loved ones that sense of security?
Newlyweds
Congratulations on your wedding, now before you get married – if you are planning on doing the big lavish wedding, something missing that no insurance salesman is going to tell you is that if you review a guide on the cash surrender value of your single life insurance policies instead of converting to a couple policy, it means you could actually end up with more cash because single-person policies are generally more expensive than couple policies. As a result, if you cash out your single policies and get a couple policy after you marry then you are not only covered in the event of death but you also have a cash lump sum to go toward that wedding or even the house mentioned above.
Baby Onboard
This is an exciting time with a new addition to your family, bug regardless of whether you get pregnant, adopt or use a surrogacy service, you are going to want to protect your family as when you lose your parents not only do you miss the resource of someone older, and hopefully wiser, but also you don’t have the cash resource to pay for a funeral, the costs of which are creeping up and up. By taking out a life insurance policy you protect your future adults from the financial shock and strain of when you pass away.
Funerals
While it’s a sad time during a loss, but it’s difficult to escape death when you are talking about life insurance because they pay out upon the cessation of life. Most life insurance policies will cover the costs of a funeral with some over 50s coverage specifically targeted for that audience. Regardless of the situation, the cost of a funeral is usually mitigated against by life insurance which is why it’s a good idea to purchase it ahead of time. If you are worried about family members being sneaky and divvying up the estate, most providers will allow you to make changes to your beneficiaries periodically so you can change your policy as your situation changes.
