Five reasons to consider buying life insurance


by Our Happy Money 408 Views

If you have other people in your life that rely on your income its worth considering taking out life insurance. If you pass away and your loved ones rely on your income to pay to mortgage or buy food then they're going to be in trouble. They're going to have problems they wouldn't want to even think about when they're grieving. Its a terrible situation for everyone but unfortunately its something we need to think about now.

Here are five of the most typical reasons you should consider a policy.

1. To keep the family home

If your earnings are required to pay some or all of the mortgage repayments once you pass away the people who live there with you might not be able to afford it.

There are special kinds of life insurance called term insurance or mortgage life insurance. These are designed to run the length of a mortgage.

2. To support your children

If you've got kids they probably rely on your income until they're about 21. There are a lot of pressures on the younger generation right now with things becoming more expensive and there being less work. Making sure your kids have some extra money will give you and them relief during hard times. Knowing theres money for your funeral and money to put food on the table after your gone is exactly what you and them need.

3. To put a value on domestic work and care

Life insurance isn't just for people who work. A common mistake is to insurance the life of the partner who brings up the children, cares for relatives and does all the domestic work. The death of a spouse who doesn't work can still have a significant impact on the family. Childcare can cost as much as £1,000 per month.

4. To protect your pension

In many couples pensions one person typically has a higher pension. In some cases their other half can receive payments after their death but if there is no provision for this you might have to look at life insurance to fill that gap.

5. To cover tax bills

Finally, having life insurance later on in life can be a great way of helping your family deal with big tax bills. You should talk to a qualified expert about this. Talk to to get further help with life insurance.