Many people start a life policy when they take out a mortgage or start a family and think no more about it. However, life assurance can be combined with other cover, so as well as providing a lump sum on your death, you can also protect against loss of income due to unemployment, accident or critical illness. Policies can be tailored and cover combined into the right plan to meet your needs at any stage of your life.
If you marry or enter into a civil partnership you’ll need to think about protecting your joint liabilities. You’re likely to take on more financial commitments, and your partner might not be able to cope financially without your salary to rely on.
BRICKS AND MORTAR
A mortgage is generally the biggest debt we take on. You should consider ensuring that you and your family have the peace of mind knowing your mortgage would be repaid should you die.
FAMILIES NEED PROTECTION
Raising a family takes time and energy and life assurance isn’t always top of the ‘must-do’ list. There may no longer be two incomes, and there will be extra expense. For the main earner it’s a time to think about increasing life cover, and consider insuring against unwelcome and unexpected events such as a life-threatening illness, accident or unemployment. If you’re the main carer, it makes sense to ensure that money would be available on your death to meet the cost of the many services you provide for your family, like housekeeping and child care.
LATER IN LIFE
When you retire, your children probably won’t be as reliant on financial support and your mortgage may have been paid off or reduced. However, you may no longer have the benefit of any life cover as part of your employment package. If you have a spouse or partner who is reliant on your income, or if you want to ensure money is available for children or grandchildren on your death, you could still benefit from life cover.
Reviewing your insurance cover regularly will help protect your family from financial hardship. It’s also an opportunity to check your existing policies are still right for you and represent good value for money.
SIMPLY MONEY NEWSLETTER – SUMMER 2015