When you are single and carefree, you may never really think about life insurance. After all, you perhaps have no dependents or partner and therefore, don’t need to worry so much about what would happen if something were to happen to you.
However, we all know that things can change and therefore, in today’s blog, The Cheapest Life Insurance talks about those events that happen in life that may just mean you need to consider getting quotes for life insurance, to make sure those you love are financially secure.
When you get married it is a significant event in your life. After all you just went from one to two and as you head towards a new future together you may well dream of having a great home and maybe even children.
Life insurance cover at this point is something to consider as you do have to think about how the mortgage would get paid if one of you were to suddenly die.
It’s very crucial to remember that when someone passes away, any debts are automatically passed on to a partner or family member, so they are not ‘written off’ as many people imagine.
Buying a home
For many newly married couples, one of the first things that they think about is buying a home. This is a great experience and really means you are building a new life together. However, with a mortgage comes responsibility that you may never have thought of. You need life insurance.
So for example, if you get a £200’000 mortgage, you need to make sure that should something happen to you or your spouse that you have cover to pay it off.
It can be a real struggle for a loved one when they are suddenly left with the mortgage alone and if you can’t bear the thought of them selling up and having to move on, then life insurance should be something you both think about.
The good news is that mortgage protection insurance doesn’t have to be purchased from your mortgage supplier. It can be purchased independently. So long as it covers the value of your mortgage you could save pounds elsewhere.
With new life comes new debts. For example credit cards, vacations, home improvements and so on. While these are fairly typical of many people, it does mean that you need to make sure you have life insurance in place should something happen.
After all, if one of you passes away, the other will be left with all those debts and the mortgage and end up really struggling.
Changing your job
This one is not always an obvious one. However, as you carve out a career and earn more money, you will find that your overall spending tends to go up. You buy a bigger and better car, maybe take out a loan for a new kitchen and generally have much more money going out.
This is the point at which you should look at reviewing your current life insurance to make sure that it will be high enough to pay things off should something happen to one of you.
This one really is one of the biggest changes in your life. When you start to think about a new family then when that family comes you should think about life insurance.
Having it will help to make sure that should something happen to you or a partner, that there are sufficient funds to help pay for child care, the mortgage and all the debts that have been accrued in the family home.
While no one likes to think about this kind of thing it is important, especially if you don’t want your family to struggle when you’re no longer around.
Later in life…
As you get older so do your parents and for many family, that means you need to start supporting them.
After all your parents made so many sacrifices to get you where you are it’s nice to think you can pay them back with your support and care later in life.
Sadly though while your kindness is a great thing, what happens to them if you’re no longer around? Do they end up going into a home? Can they rely on other family members for the same level of care?
Ultimately in this scenario it’s a good idea to have life insurance that covers their care should you no longer be around.
Changes to marital situation
Sadly, whether we like it or not sometimes things don’t quite work out as well as you would imagine. For example, the statistics for divorce are much higher now than in previous years. However, what does this mean for your life insurance?
If you are sadly in a situation where you are divorcing, you will need to look at whether you still need the same level of cover. Perhaps you are looking after the children and therefore your life insurance coverage will need to focus on their financial needs should something happen to you as a priority.
Another aspect you should not ignore is of course beneficiaries. It’s really important to make sure that you amend your cover accordingly so that if something happens to you, any financial pay out will go to the right person.