Why Insure Your Car, Pet & Phone But Not Yourself?
28th November 2016
We get it: mandatory car insurance rightly ensures that the vast majority of vehicles on the road are covered after accidents. The lack of an NHS for animals makes covering costly vet bills for a poorly cat or dog a near necessity for many pet owners. But is covering stuff like your phone or the latest must-have gadget really more important than insuring yourself?
When should you consider insuring yourself?
If you or your partner were to die, a life insurance policy is designed to make sure your family enjoys a financially secure future. That's why you should consider insuring yourself if you:
Recently had children
Although it brings massive rewards, welcoming a new life into the world isn't easy. There's sleep deprivation, nappy changes and that's before you take into account the ongoing financial commitment.
Since 2003, the cost of raising a child to the age of 21 in the UK has increased by a massive 63%. This means that it can now cost new parents up to £230,000 to raise just one child and why it's important that a financial backup plan is in place to ensure that those costs are protected. Life insurance can provide new parents with a future-proof financial back-up plan.
Purchased a new home
A recent study found an alarming 21% of British households have no financial back-up plan if they were to lose their main source of income unexpectedly. A quarter of people would only be able to afford household bills for a maximum of three months if a breadwinner was unable to work because of long-term illness.
Investing in a life insurance and critical illness policy can make sure your family is able to pay off any outstanding mortgage if you die or contract a specific critical illness.
Have you just vowed to care for your partner for richer or for poorer? Many couples use their combined finances to take on bigger expenses after marriage, such as renting a bigger apartment or buying a brand new car together.
One of the many reasons people buy life insurance is to provide a lump sum that can help protect a partner's / family's lifestyle should one of the breadwinners die. For this reason, securing life cover can help married couples build a solid foundation of financial protection for their lives together.
What types of life insurance are available?
There are several different types of policy you can choose from, including:
Level term life insurance
This is a type of life cover that pays out a pre-agreed sum. You get to choose the length of the term you desire and the payout amount you require. It's important to remember that policies with bigger payouts also come with more expensive monthly premiums.
Learn more about whether level term life insurance is right for you here.
Mortgage protection life insurance
This is designed to protect your dependants by paying off your mortgage in the event of your death. This type of cover is also called decreasing term life insurance because the cover provided decreases over the term of your plan and broadly at the same rate of the outstanding balance on your repayment mortgage.
Read more about whether mortgage protection life insurance is the right cover for you here.
Critical illness cover
This can be combined with level term life insurance or mortgage protection life insurance. This type of cover pays out a lump sum if you are unable to work after being diagnosed with an illness specified within your policy.
Discover more information about the protection provided by critical illness cover here.
At comparecover.com, we're dedicated to helping people protect their world for less. As a specialist online comparison service, we are committed to helping you research all your life cover options thoroughly so you can find the right policy at the best possible price.
Using our price comparison service is free, fast and incredibly easy. To instantly view and compare all your quotes in one straightforward search, click here now.