After the coronavirus pandemic brought mortality to the forefront of many people’s mind, it’s become more important than ever to ensure you have a plan in place to protect your family in case anything were to ever happen to you. Life insurance policies should be included in everyone’s financial plans because the truth is, you never know when you might go.
This does not constitute advice and advice should be sought in all instances before acting on it.
Even though it might not be a pleasant topic, it is essential you think about how your loved ones will be impacted in the event of your untimely death. Protect your family and gain peace of mind with life insurance.
Financial safety net
You control how much your policy will cover and cost, but it’s important you provide a financial safety net for your loved ones.
Ask yourself:
- What do I need to protect?
- How much cover do I need?
- How long will I need cover for?
Once you know the answers to these questions, you can ensure you have adequate coverage. It provides a source of income so you’ll want coverage that leaves no stone unturned, so to speak. Evaluate any area where the loss of your income might hurt your family and include the expenses in the coverage you need.
Obtaining the right advice from your adviser and selecting the right products for coverage is crucial.
Coverage during different stages of life
Your financial situation changes as you move through life, so it makes sense that your protection needs would follow suit. When you have a mortgage and a family, you’ll need considerably more coverage than a single person. The amount of cover you need will is entirely dependent on your own personal circumstances and what your family needs.
Cost of insurance
The cost of your policy will depend on your individual lifestyle factors. Among them are: how much money you want to cover, the length of the policy, how old you are when you take out the policy, your health, lifestyle, and habits such as smoking and drinking.
Income replacement
If you have anyone that counts on your income — whether that is a partner, child, or any other family member — you should have enough financial protection for them so they aren’t stuck paying off the mortgage or any other financial liabilities you may leave behind, at the very least.
But life insurance will also help to replace the income outside of those things. Living costs will vary from family to family, so there’s no hard and fast rule as to how much you need to provide. You should have a plan in place to replace your income so your family can maintain the same standard of living they enjoyed while you were alive.
Get protected
Even though it might not be a pleasant topic, it’s crucial you think about how your loved ones will be impacted in the event of your untimely death. Protect your family and gain peace of mind with life insurance. Speak to a financial adviser to incorporate life insurance into your financial plan now.