Is life insurance worth it?

20 July 2018

Everyone’s circumstances are different, but if you’ve reached a stage of life where others rely on you financially, then life insurance could well be worth it. In this article we’ll explore how life insurance can help protect the future of those close to you, and give you peace of mind.

Of course, not everyone needs life insurance. But if your children, partner or other relatives depend on your income, assets and parental responsibilities, taking out life insurance could help provide for your family in the event of your death.

There are plenty of good reasons to get life insurance. Firstly, your loved ones could benefit from the cash sum paid out if you die while covered by the policy. This can help your family cover things like the mortgage, household bills or childcare costs should the worst happen. Life insurance policies can be tailored to meet your specific needs; you can decide on the type and amount of cover you need, the premium you can afford and how long you want it for. But the real benefit to you isn’t just a financial one – it’s the reassurance that those close to you won’t struggle for money when you’re gone.

When is it worth getting life insurance?

Life insurance tends to be cheaper when you’re younger, as your premiums are calculated on the basis of your age and health, among other factors. That said, there are certain times in your life when it is undoubtedly a good idea to consider life insurance. These include:

  • If your partner or other loved ones rely on your income
  • If you have children who depend on your earnings
  • If you’ve bought a property with a mortgage to pay.

If you’re not the ‘breadwinner’, is life insurance worth it? Yes, because life insurance is not just for high earners. If you look after the children at home, that takes time, energy and comes at a cost. Ask yourself, could your family manage if you were no longer around? Would your partner have to take time off work to look after the children? Your life insurance policy could help with some of these worries by paying a cash sum which could be used to help towards the mortgage for example, or covering everyday living costs such as child care.

Insuring with us

Our life insurance offers peace of mind, no matter what the future may bring. We offer two types of cover:

Life Insurance - Your chosen cash sum could be paid out if you die during the length of the policy. It could be used to help protect the family's lifestyle and everyday living expenses or help to pay the mortgage (interest only).

Decreasing Life Insurance - Designed to help protect a repayment mortgage so the amount of cover reduces roughly in line with the way a repayment mortgage decreases. This means your loved ones could continue to live in the family home without worrying about the mortgage.

Please remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.

So, is it worth having life insurance? Every household has different needs, but if you want to help provide for your family at a difficult time, life insurance really could be worth it. Find out more about our products.