Life insurance is something that we always seem to put off, or tell ourselves we will deal with it tomorrow. You might see advertisements on the television or in a magazine and think about it for a split second, or perhaps even discuss it with a mortgage broker if you are moving house. However, it is not something you think about or review frequently, which could leave your loved ones in a tough situation. Here are some of the reasons why you might be putting off arranging your life insurance as well as some reasons why you shouldn’t.
I Don’t Need to Worry About It as I Won’t Be Here
It is true that you are unlikely to claim on your own life insurance policy. However, a lot of policies also offer you ‘Terminal Illness Cover.’ This means that the life insurance payment can be made early if your doctor confirms your illness is terminal and you are not likely to live for another twelve months. The early pay-out will give you time to settle your financial affairs before you die and could be used to pay for your funeral, leaving your loved ones with less to worry about at such a difficult time.
You also need to consider whether you would want your family to be left with the financial burden of paying for your funeral and coping without your income if you were to die without any life insurance. If you are young, free, and single, these things probably won’t bother you too much, but if you have a partner and children to think about, then life insurance may become a more serious consideration.
It Will Never Happen to Me
It is natural not to want to think about your own mortality. Even in the current pandemic, if people spent all their time worrying about their own demise, they would not be able to get much else done. You may be expecting to live until a ripe old age and outlive your friends and family, but sadly that is not always going to be the case, and you can’t depend on it. Many people die while they are still relatively young either through illness or accident, and the best way to provide for your loved ones after you die is through taking out a life insurance policy while you are still alive.
I Get Insurance Through Work
Many people are offered life insurance through work. Often this goes hand in hand with the company pension scheme. If you work for a large company, there is a good chance you will have a scheme in place. However, most people don’t check this. It is prudent to check your benefit package when you start a new job. Things such as salary, pension and whether they will give you a company car or not are very important. Most people then file the information in a drawer and don’t check things such as sick pay or life insurance again. It may be that you think you have life insurance, but you may not. There is also a possibility that this will pay out the amount your loved ones will need but you could be underinsured. It is always worth checking and take out additional life insurance if necessary.
These days most people will not stay in the same job forever. People tend to change jobs every few years and you may not be offered the same life insurance package in your new job. If the salary and company car are better, the chances are you won’t have thought to check that the life insurance package is the same or better, and you may be insured for a lot less than you thought.
A lot of people dream of becoming self-employed at some point and many people take the plunge every year. It is a big step to take and it means that you will no longer have company benefits to rely on. You will need to sort out your own life insurance if you become self-employed.
I Have Existing Health Issues
Many people worry about the cost of health insurance if they have pre-existing conditions. Traditionally, people with health issues have found it expensive or even impossible to get life insurance. However, that is no longer the case, as sites such as I’m Insured can help you arrange comprehensive life insurance with diabetes, depression or other health complaints. They will connect you with over 200 UK insurance providers, which makes it easier and cheaper to arrange diabetes life insurance and cover for other health conditions. Illness does not need to be a financial problem as well as a health problem.
So, if you now have life insurance on your mind, it would be a great time to review your situation, make sure you can cover your expenses, and provide for your loved ones in the event of your death. If you put it off, you may never get around to it.