We know that life insurance can be a difficult topic to get your head around. There are many life insurance myths out there that can make it harder to decide if life insurance is right for you.
We investigate some common life insurance myths to help you make an informed choice.
Unfortunately, you never know what's around the corner. Your passing could be very sudden and leave your family financially burdened. With life insurance as a safeguard, you could help avoid financial hardship for your loved ones and leave something behind to cover funeral costs, repay the mortgage, finance childcare, or help with household bills.
Your age, medical history or an underlying medical condition may be among the reasons that you think life insurance isn't for you. But if anything, these factors make it even more important to get covered. Bear in mind that all life insurance providers have different acceptance criteria. Just because one insurer is unable to accept your application, doesn't mean the others will too. Don't forget to shop around and make sure you weigh up all your options so you can find the best life insurance cover to suit your needs.
It's important for the main breadwinner of the family to get covered, as the family is dependent on their wage, but even stay-at-home parents need life insurance. Consider how much it would cost to keep your family home running if something unexpected were to happen. Childcare alone can be a significant expense and a life insurance policy would provide a pay out that could help to cover this and other costs.
This is a very common life insurance myth. However, the fact you don't have a family of your own doesn't automatically mean you don't need life insurance. Do you have a mortgage or personal debts? Do you plan to leave your home to a family member or loved one? Not only will these need to be covered in the unfortunate event of your death, but so will your funeral costs. If you don't have life insurance cover in place, then the responsibility for these financial costs could be left to your closest family members.
Some employers will provide something called death in service insurance, meaning that if you die whilst in their employment, they would pay out a multiple of your yearly salary or a fixed amount to your loved ones. You will need to evaluate whether this would be enough to financially support your dependants, and if not, you should consider purchasing life insurance in addition to your death in service insurance cover. Also, should you change job you may no longer have any life insurance cover if it's not provided by your new employer.
This is another common argument against life insurance, but would you say the same about your home or mobile insurance? Life insurance can provide you with the peace of mind of knowing your loved ones will be provided for financially in the event of your death. Would you consider this an unnecessary expense? And believe it or not, life insurance cover can be a relatively small monthly cost, as little as your daily Starbucks or a monthly Netflix subscription.
This may be the case if your assets exceed your debts. If you were to consider your mortgage, personal debt, and any other large costs in your life, would your savings cover these with ease? It's always worth remembering that any savings you leave to loved ones could be subject to tax. Having life insurance on top of savings could be a good way to ensure your dependants will be financially stable after your passing.
To get the best life insurance deal for your individual requirements you'll need to shop around but this shouldn't put you off making such an important purchase. Using Compare Cover, you could find the right life insurance cover for you by comparing policies from our panel of trusted UK providers in as little as 4 minutes.
If you have more questions about life insurance be sure to check out our life insurance guides. Or, if you're ready, there's no better time than the present to get covered! Simply enter your details to compare life insurance quotes now.
Last year saw record numbers of Brits chose to stay in the UK for their summer holidays, with Covid-related restrictions and complications making...
Life insurance is a subject that some may be reluctant to discuss, but it can be an important subject to think about as you get older...