Do I really need Life insurance?
Life Insurance – is it worthwhile?
That will depend on your circumstances.
But if you have family, debts or financial responsibilities that will need to be looked after when you die, then checking out is a good idea.
I’m too young to have Life insurance!
Being young does not mean you are invincible. Sadly, even young people die. Death has no regard for age and it can come in many ways – illness or accident. Now, ask yourself:
“If I die tomorrow who is going to pay for my funeral and take care of any debts
(student loans, car loans, or credit cards) that I have managed to rack up?”
Just because you are dead doesn’t mean these go away! The burden will probably fall on your family.
Now, maybe, they have the resources to take care of them. Great! But if they don’t, how are they going to find the money? Are these costs something you really want to saddle your family with?
But being young means you won’t need too much Life cover. It will probably be about the cost of a couple of coffees (or beers!) a week. (But you might also consider some Trauma cover – being young doesn’t protect you against disease!)
I am still young(ish) and healthy
You’re in the prime of life. Everything still works the way it is supposed to, you look after your health, have a good job and can take care of your family.
This can be the best time. New adventures, new house, kids, new car, dinners out, holidays and a happy future ahead.
But along with this comes education costs, mortgage costs, utilities costs, food and clothes,rates, car expenses… plus, plus, plus!
And should one parent pass away (and nowadays most households need two incomes to get by) how will the survivor manage those expenses on one income? Will the lifestyle of your family be affected? Will your children suffer by going without? Will they be able to keep the family home?
If you have life insurance, your family will be financially comfortable. And isn’t that what you would want for them?
I’m too old to get Life insurance!
Getting Life insurance can be more difficult and more expensive later in life, but, again, may be worth considering.
Think about what you may want to do for your family –
- leave them with a nice cash bonus to help them get set up in life,
- ensure that your partner can continue with the lifestyle you have built together or,
- maybe make a donation to a charity that you support.
But if, because of your age or pre-existing conditions, Life insurance will not work or is too expensive there are options.
For older people Funeral plans are available. (While these may, initially, seem to be cheap and easy they there are serious limitations of these policies and they would not be our first recommendation).
But if everything else fails they may be worth considering but be sure to understand you may end up paying more money than you will get back (a blog on this subject is coming up).
Life insurance has a 100% guarantee of making a claim.
We are all going to die – one day (and we hope that day is far in the future) – and Life insurance is a claim that will be made at some point.
But make sure you understand exactly what you are getting, that it is structured correctly and that what you want to happen to the money will happen. Get it right now because it will be too late when you are dead! We have a blog on this.
Need some advice?
Have a look at getting your Life Insurance sorted properly.
You can also get in touch with us. We will talk through your situation with you and provide free, no-obligation advice
