Why Buy Life Insurance?
Article published on 18th March 2013
Are you debt-free with no dependents, abundant savings and with no partner or relatives to support? No, neither are we! Life Insurance is not the most cheerful of subjects to have to address but it is a necessity for the vast majority of us.
How much do I owe you?
Any Financial Advisor worth his salt is going to tell you to cover your outstanding mortgage but rarely ask about other credit. According to research from AVIVA, the average household in the UK has over £11,000 of other debts spread across Credit Cards, Overdrafts, Car Loans and other finance*. Some people mistakenly believe they are insured by the creditor which is rarely the case and the debt is then due from the estate, should the worst happen.
The other debt that we do not like to think about is funeral costs and related expenses. The average cost of a funeral is expected to rise to £5,000 within the next 4 years increasing faster than inflation (Telegraph Money).
You are worth more than your income
To dispassionately assess your own circumstances, try a little mental exercise and take your contributions to the household out of the day-to-day running of the family and imagine a typical day. Legal and General value the annual cost to replace the responsibilities of a parent to be between £24,000 and £31,500**.
A Life Insurance plan is not going to pick the little ones up from school, plate up a healthy dinner or unscrew the jam jar lid, but a financial windfall does at least offer options; such as cutting back to part-time hours, taking on a childminder or just putting a little nest-egg away for the future.
Okay, I'm lost now?!
Get advice! Top Quote UK Financial Services have a team of fully qualified advisors to help find the right cover to suit your needs and budget. You can call us on freephone 0808 17 82 777 for advice.
We are one of the few brokers to offer immediate online quotes for those savvy customers looking for the best possible price.
Life Cover has options to suit all budgets and is available to cover yourself over a number of years (Term Assurance), or to provide a guaranteed payout at the point of death (Whole of Life). Prices can start from as little as £4.00 per month.Source:
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