Life Insurance – An ongoing need for cover?

Life insurance is becoming a widely accepted insurance for the young. Most of those with small children, a mortgage or both, where dependants would be unable to pay the bills on their own, know its value. It is one of those ‘just in case’ purchases that we don’t really want to face but which is necessary if we want to make sure our loved ones will be looked after, whatever happens.

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However, as we get older, the requirements for cover change. Your children grow up and become independent in their own right. Your mortgage gets smaller and is ultimately paid off. The need to insure some of your income or cover payment for services such as childcare, diminish. If there is nothing that needs to be paid, therefore you might consider stopping your life cover. If no one is financially dependent on you, why pay for them to receive money when you are gone?

Financial dependence is the key. It may not be quite as explicit as a mortgage repayment but dependence can continue even after the house is yours and the children are gone. Any loss has a serious impact on our lives – and the security of knowing money is the least of those worries can minimise at least the unnecessary elements of stress. That need is of course much lower, but there are situations you might want to cover.

  • Perhaps it could help to pay the bills for a few months while your partner is dealing with loss and upheaval.
  • Perhaps you are in retirement and want to buy your partner additional income because your own pension would stop on your death.
  • Perhaps you simply want to cover funeral expenses.
  • Or maybe you have a larger problem, such as Inheritance Tax, for which money would otherwise have to be raised from the sale of treasured possessions.

So whatever your age, don’t ignore life cover. With the exception of only some of the more complicated circumstances, it is an inexpensive and easy insurance to sort out and of course you won’t need as much
as you once did.

To find out what might be appropriate for your situation, speak to us here at Logic Wealth Planning.