The concept of Life Insurance is quite confusing. What exactly is it? Do I actually need it? At what point in my life is it most relevant to me? These are common questions that we probably all have when Life Insurance is mentioned.
We want to try and help by answering these questions, and breaking down some of the confusion and complexities around life insurance.
So firstly, what is it?
Quite simply, life insurance is an insurance policy that you take out on yourself (or another person such as your spouse). It is there so that if you or the person insured were to die during the term of the policy, the insurance company would pay out an agreed amount of money to help ensure that your loved ones could be helped financially, especially for the big things like your mortgage repayments.
So do I actually need it?
Life insurance, unlike car insurance, is not something you’re legally required to have. However, if you have dependents, a mortgage or loans then it is often recommended. No-one likes to think about it, but if you were to die, would your family need additional finance to support the cost of bringing up the children, or paying off the mortgage or your loans? If the answer is yes to any of these, then life insurance is probably something you need to consider.
When is the best time to get it?
Life insurance is generally cheaper the younger and healthier you are, so the best time to get it in order to lock down the cheapest monthly premiums is as early as possible. This way your low payments are locked in for the duration of your policy, which can be for up to 40 years – possibly saving you money in the long run.
Buying a house, or having a child, is usually the time in our lives where it feels like the right time to get financial ‘life admin’ in order, so this might be when you feel it’s the best time to take out a life insurance policy too.
Why should you choose us?
If you are now thinking you might benefit from taking out a life insurance policy, then you might be thinking – so now who do I choose?
The Life insurance policy has to feel right for you, and you need to feel confident that you have chosen an Insurer who can give you that peace of mind. Budget Insurance is one of the UK’s leading insurance brands, with an experienced UK based customer service team (because we know it’s sometimes reassuring to be able to pick up the phone and actually speak to someone!) We also offer two types of life insurance policies so that you can tailor the amount of your financial payments, and your cover level, to suit your personal requirements. We also offer additional products and services including Critical Illness cover, a free Will writing service and the ability to create a Trust fund. We fully understand that you are one of the most important things to your family, and our life insurance services have been designed with that in mind.
We hope this blogpost has helped provide some more clarity on what is a complicated topic.
We know that life insurance can seem daunting, but at Budget Insurance we do want to make it as easy as possible.
To find out more check out our Life Insurance page and FAQs.