The coronavirus outbreak in 2020 highlighted the importance of wealth protection policies, namely Life Insurance – for many people it sparked an increased interest in obtaining coverage. The financial strain caused by the pandemic might mean you need to figure out your priorities, but it’s important to remember that you can find coverage for any price point. You can’t really afford not to be prepared.
This does not constitute advice and advice should be sought in all instances before acting on it.
The importance of Life Insurance
Anyone who has family members or loved ones that depend on their income should have a life insurance policy.
Even if your children are now adults or your partner has their own source of income, there are still costs to consider that many don’t want to pass on, like funeral costs or outstanding debts.
The earlier you secure life insurance cover, the more affordable it will be. Generally, younger people are in better health which is a factor in how much your policy premiums will be.
How much coverage you need depends on a variety of factors.
As a rule of thumb, you want your pay out to be roughly ten times the amount of your annual income. Your calculations should take into account any outstanding debts, your outgoings and dependent costs, and other possible future expenses.
The first step you should take when undergoing the process of finding cover is to compare all the different policies available to you to see what’s out there before you seriously consider a provider or specific policy.
Pro tip: Opting for “guaranteed premiums” ensures the price you pay is locked in over the course of the policy. And remember: you’re not beholden to your policy – life circumstances often change requiring a different level or coverage or might even qualify you for an even more affordable monthly payment, so don’t be afraid to review your needs on a regular basis.
With all the policies and providers out there, it can be difficult to find one that suits your needs. The best way to find affordable, yet comprehensive coverage is to work with a specialist.
Independent financial advisers have the knowledge, experience, and connections in the industry that will help you secure a policy that works for you.
If you’re unsure of how much coverage you need or what kind of premiums you can afford, speak to a financial adviser. Dental & Medical Financial Services is happy to review the wealth protection needs of our clients, so get in touch.
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Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.