Life insurance isn’t a policy you legally need – like car insurance if you’re a driver - but it’s something you should consider if you haven’t already.
If you have dependents, this type of insurance provides them with financial protection if you pass away. So should the worse happen, your loved ones will be supported - whether that’s with their mortgage or rent payments, childcare costs or everyday spending.
Should I take it out?
Whether you choose to take out life insurance will ultimately depend on your personal circumstances.
But if you have dependents and a current mortgage, it’s certainly something to think about.
Your mortgage is typically your largest monthly outgoing. If you were no longer here, would your partner or dependants be able to afford to keep paying the mortgage?
Grieving the loss of a loved one is difficult enough without the added stress of keeping up with your financial commitments.
Remember, if you have a joint mortgage, your partner will be responsible for paying back the full amount borrowed in the event of your death. This means they’ll need to take over the mortgage payments.
If you don’t have insurance and your partner can’t afford to pay the mortgage, your family home may be at risk of repossession. Life insurance can help your family stay in your home by clearing the outstanding balance on your mortgage.
Don’t get confused
If you already have additional cover like income protection or critical illness, you might think there’s no need to take out a life insurance policy too.
Life insurance is designed to pay out in the event of your death. Unlike this type of policy, a critical illness or income protection policy will only provide financial support while you’re alive and if you suffers an illness that prevents you from working.
If you or your partner don’t have enough money saved, you might want to consider taking out life insurance too, to help your household should the worse happen.
How much cover do I need?
The amount your family will receive - either through a one-off payment or monthly instalments - will depend on the level of cover you choose to take out. The price of a life insurance policy depends on your personal circumstances and the type of protection you want.
Insurance providers take into account things like your age, weight, lifestyle, existing and previous health conditions as well as the amount of protection you wish to have when calculating your premium.
As with any type of insurance, it’s a good idea to weigh up your options and shop around before you commit to a policy.
Of course, if you don’t have a partner or dependants who rely on your income to cover mortgage, rent or utility bills – maybe you live on your own - you might decide that life insurance isn’t something you need right now.
Here at Ocean, you can find a life insurance policy tailored to your needs. Find more information about what this cover can include here.
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