Life insurance is one of the three main tenets of protection, and an essential part of your financial planning tool kit. It’s one of the best ways to ensure that you can protect your family in the event that the main income provider passes away. Do you have a plan to deal with a sudden loss of income?
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Life insurance to the rescue
A loss of this income can make it incredibly difficult for the family to remain financially stable. Often, families without anything to fall back on have trouble maintaining their current standard of living, paying bills, and funding future financial goals such as education or retirement.
Life insurance can prevent any stress should the worst ever happen. Life insurance provides a lump sum payment, called a death benefit, to the beneficiaries named in the policy upon the death of the policyholder. This money can help provide financial support to the family during a difficult time, covering things like funeral expenses, outstanding debts, and ongoing living expenses.
Covering the big expenses
Life insurance is important for anyone who has one or more people to support financially, but it’s especially important if you have a mortgage and young children. As the main income provider, life insurance is the guarantee that your family will be provided for in the event of your unexpected death.
Here are a few reasons why families need life insurance:
- If you have a mortgage, it’s likely that a majority of your income goes towards monthly mortgage payments. It could become a massive struggle to pay this sum every month if the main income of the household was suddenly lost. A life insurance policy can help pay off the mortgage, so your family doesn’t have to worry about losing their home.
- As the main breadwinner, your family likely depends on you to cover everyday living expenses such as food, utilities, and childcare. If you were to pass away, your family may struggle to cover those expenses. Life insurance can help ensure that your family has the financial support they need to cover those costs.
- If you have young children, your passing leaves them with a future financial gap to fill, if you don’t have a plan to replace it, that is. No matter what happens to you, you’ll want to ensure that they have a bright future, and the money from your payout can go toward your children’s education fund or anything they might need in the future.
As you can see, life insurance is essential for anyone who has people that depend on them financially, dependents, especially if you own a home or have young children that can’t contribute to household finances. It’s their lifeline during a difficult time.
Affordable plans ensure coverage
The amount of life insurance coverage you need depends on a variety of factors, such as your family’s financial needs and goals, the amount of debt you may have, and the number of dependents you support. A life insurance policy can be customised to meet your family’s specific needs, ensuring that you are sufficiently covered and there are affordable plans available that ensure your financial future remains protected, all while still allowing you to meet your current financial goals.
Find the right coverage for you
Life insurance is an essential tool for families to financially protect themselves from the impact of losing the main income provider. But there are so many options that finding the right policy might seem like more trouble than it’s worth. Don’t leave your family without a financial safety net, get in contact with the experts at Dental & Medical Financial services to get covered today.