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The Importance of Life Assurance

Many people dismiss life cover as an expensive waste of money without thinking about what would actually happen if they were to die unexpectedly.

For a single person, the response is probably not a lot, but for someone in a relationship with a spouse or partner, especially with children, the consequences of losing the main income earner in a household unexpectedly are dreadful.

To help you think about whether you need life insurance, have a think about the following questions and whether you need cover or to review any existing policies:

· How would you and your family survive financially if you were suddenly unable to work due to sickness or injury?

· How would your family cope financially if you are the main income earner and died unexpectedly?

· Do you have family or children that are financially dependent on you?

· If you have a job, how much sick pay would you receive and for how long?

· If your employer offers ‘death in service’ cover, how much would they pay your family and would the money allow them to pay the bills?

· If you have life insurance, have your financial circumstances changed and do you still have enough cover?

Most people are too busy struggling to live day-to-day to worry about what might happen if their partner died and left them with a mortgage and bills but little income.

Lots of people are surprised to find that life insurance does not cost as much as they feared – especially if they are starting out with buying a house and a family in their twenties.

A life cover package to cover all situations above can quite easily be tailored for most people.

This would include:

· Mortgage insurance cover that decreases year-on-year in line with the mortgage and pays off the outstanding balance if you or your partner dies.

· Critical illness cover pays out if you suffer one of several major illnesses or if you are unable to work due to sickness or disability.

If you already have life insurance, then review your cover and make sure that what you have covers all eventualities.

If you do not have any life insurance, sit down and tot up your debts – like your mortgage, loans or credit – and try and work out how much your family would need to live comfortably each month if these debts were paid.

Then you need to work out how long they need the money for and whether to consider any other eventualities like sending a child through university.

The amount of money you may leave your partner to raise on their own could be quite staggering, especially if you have young children.

The good news is effective life cover is available to help your loved ones through these difficulties. Call Ken O’Neill QFA (qualified financial advisor) today on 071 9159222 to make an appointment to review your existing plans – worst case we might even save you some money.

Tuesday, April 7th, 2009, by admin and is filed under "Life & Serious Illness ". You can leave a response here, or send a Trackback from your own site.