Is Life Insurance Worth The Premiums? We Discuss

Life insurance can seem expensive, but it could also prove to be worthwhile. Its design is to reassure you that your dependants, such as your partner, children or a family member, will be financially stable in the event of your passing.

Insurance, regardless of the type, is not determined by the monthly costs. It is decided by the understanding of whether the circumstances would be difficult or potentially catastrophic without it.

Having life insurance will provide beneficiaries with a material benefit, often in the form of a tax-free lump sum of money. Your chosen life insurance policy is designed to provide coverage of up to 5, sometimes 10 times your annual salary. This financial safety net for your family will help to pay for things such as childcare, school fees, mortgages, household and utility bills.

Despite the financial stability, it could provide to a person’s family in the event of their death, approximately 60% of the British population currently do not have life insurance.

Certain life events can trigger a person to review their current circumstances. They will look at how the impact of their death, or an illness, may have on the people in their life, who rely on the financial support they provide.

Whilst protection for your loved ones is one of the main benefits of investing in life insurance, here are a few of the other reasons.

Low Costs For Starting Young

Life insurance is at its cheapest for those who are young and healthy. However, this is when very few even think about it. Many individuals in their twenties or thirties will ask why they need life insurance, especially considering their age.

One reason to invest in life insurance at an early age is that it could reduce the cost, even if you live a long life. If a fixed rate is taken, then the cost will remain low throughout the person’s life.
Additionally, the application process will be far easier as a young person is more likely to be healthy and not have health conditions such as diabetes, high blood pressure or other illnesses.

Choice In Payment

With a life insurance policy, there is the option to select the amount of coverage needed and how long it is needed. There is also the option of paying your premiums monthly or annually. Alongside this, there is also the choice between having either a joint life (two policyholders) or a single life (one policyholder) policy.

Regardless of choice, your premiums are guaranteed to remain the same unless you decide to alter your policy.

Right Policy Best Suited For You

With life insurance, there is an overwhelming number of various types available to choose from, which makes selecting the right policy challenging. You want to pick the right one, especially one that is best suited for you and your lifestyle.

Many will seek the help of Insurance Experts, who can guide you through the selection process. There are a variety of expert advisers in the industry, such as Drewberry. These experts will be able to offer further insight into the different life insurance types. In addition to this, they can advise you on which one would work best.

This level of support will help to prevent a person from spending too much on a policy, in particular one that includes coverage irrelevant to the lifestyle of the individual.

Avoid Financial Implications

In the event of premature death, there could be financial implications for loved ones. For instance, if your dependents are unable to afford to pay off any of your outstanding debts or mortgage payments, it could cause them to lose their home. Another factor is that your dependents may struggle financially to pay for their day-to-day living. There is also the burden of charges. These are applied to your assets in the form of inheritance tax if you were to exceed certain thresholds.

All of this can be avoided with the right life insurance policy in place. A policy that will protect your family from having to face any of these obstacles.

Final Thoughts

Similar to any significant purchase you make, ensure that you have undergone thorough research before signing up. As such, consider seeking the help of Investment & Insurance experts. They will help prevent you from paying more than you have to for coverage you do not necessarily need.

Life insurance is a payment, similar to a mortgage, utilities, student loans or streaming service. With life insurance, in the event of your death and if your family or beneficiaries were facing financial uncertainty, the payments you have made are more than just a monthly bill. It would provide your beneficiaries with financial stability.

Having life insurance will provide you with peace of mind, as you know that your loved ones will be protected in the event of the worst happening.

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