The following is a guest post.
It’s easy to be complacent when it comes to life insurance cover. Nobody likes to think too much about death, and if you’re young and in good health, the prospect seems far too distant to really worry about.
However, if you have debts that could potentially be passed on or dependents who rely on you, life insurance is a vital purchase for protecting your loved ones; and it’s never too early to get started. A 2011 survey by a leading insurance company revealed that around half of their life insurance claims were made for people aged under 55 – and almost one in five paid out for policyholders aged 44 or under. Obviously you hope not to fall into this bracket, but if you do, you’re going to want to know that your loved ones won’t suffer any more than they have to.
Expenses that can fall to your partner, dependents or next of kin on your passing can include the following.
- unpaid mortgages. For example if you have a joint mortgage with your partner, who can’t keep up the payments without your income.
- school and university fees for your children. The cost of higher education will keep increasing and a big student loan isn’t a good idea for someone just starting out in life.
- Funeral costs and a host of other day-to-day concerns you’ve probably never even thought about.
With life insurance you can make provisions to ensure either that your debts are paid off, or that your family received a lump sum to help them to cope in the immediate aftermath of your passing.
In addition to this peace of mind, there are financial benefits to getting insurance sooner rather than later. You can often negotiate a lower premium for a larger total pay-out if you’re younger. Also, many insurers factor your health into the cost of your premiums, so taking out a policy while you’re young and healthy can be better value.
On the other hand, if you’re a little older you can still get good value by seeking out an over 50s insurance specialist. These companies often offer better value by only dealing with selected insurers, and their benefits and optional extras are likely to reflect your needs.
Ultimately, whatever your age, there’s no way to predict the future. With a good life insurance policy behind you, you can at least enjoy the peace of mind that comes from knowing that your family are protected no matter what.
RIAS are specialists in providing exceptional value life insurance for the over 50s. Since 1992 RIAS have helped millions of customers enjoy comprehensive cover for a wide range of insurance products.
photo credit: flickr mariachily