Smart Insurance http://www.smartinsurance.co.uk 2m 542
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
The value of life insurance cover is an ever-present question that continues to pepper the lips of those wondering if they can afford the right cover for themselves and their family. The cheapest cover available may not always be the best for a number of reasons and due to the amount of variables to consider when selecting cover, there is no ‘one size fits all’ life insurance.
As a result, many consumers pondering life insurance cover think to themselves, “It is all worth it?”
The truth is that some form of cover is better than no cover at all. People with very little savings will need to have a cushion to fall back on if their family needed to claim on the policy, so if you can’t afford £250,000 worth of cover then maybe a smaller amount would be more appropriate.
Of course, you can always shop around for the best quote. Insurance is a competitive market and you may find that some firms are willing to offer a little more cover than some of their competitors. As a result, it is a sensible move to acquire lots of quotes – and research which company and type of cover is appropriate for your current situation.
Changes in life
If you’re a single male or female under the age of 30 with no debts or commitments, life insurance may not be the most suitable venture at this time. However, things change; you may experience the birth of your first child or, as you grow older, you may want to research suitable cover for parents and grandparents. In the case of death, life insurance can help provide your significant other with the financial cover they need to plan a funeral, cover childcare costs, pay inheritance fees or other financial liabilities that may be affected by a death.
So, while life insurance may not be needed in one period of your life, it may become invaluable at other stages; especially if your family suffers a crisis that transcends finances. The protection that life insurance can offer means that any financial impact won’t be too negative.
Term or permanent?
When considering life insurance, there is also the aspect of choosing which route to take; term or permanent. The cost of term may become higher as you age so those who feel certain that they absolutely must have coverage at death should consider permanent life insurance.
On the other hand while a term policy may appear to be more expensive, this is only for a set term – premiums for permanent coverage could go on for many years after a potential term coverage expires.
As a result, there are many factors to consider when discussing the worth of life insurance. What may be appropriate for one person may not be suitable for another, so it is worth researching the type of cover you’d like to receive and for how long. Speak to a life insurance specialist to discuss the options available to you and talk through what may be the most suitable cover.
About the Author
Written by Smart Insurance (www.smartinsurance.co.uk). Smart Insurance provides a range of Life Insurance products to enable you to quickly and easily take care of your life insurance needs.