With life protection, you or your dependants will be compensated and covered should you suddenly pass away or are diagnosed with a terminal illness.
A life protection pay out can support your dependants and loved ones financially (your partner, children, etc.) with ongoing living costs like mortgages and bills.
With life protection, you can have peace of mind in knowing that your loved ones and dependants are financially protected in the future.
Life protection can help with the financial impact that your death could have on your loved ones. If you die or are diagnosed with a terminal illness during the length of the policy, it could pay out a cash sum.
There are plenty of reasons for why life protection is essential to protect both you and your family, and why people should invest in it. The most common reasons are:
Life protection can help for pay for such things as funeral costs, probate and other estate administration expenses. When you pass away there may also be other debts that need to be cleared. By having life protection, you ensure no one is left out of pocket when you die.
If you have a mortgage on your property, then life protection can be quite useful to have. A suitable policy will pay off the whole debt for your family should you pass away ensuring that your family can continue to live in the family home feeling protected without having to worry about keeping up with repayments having lost both you and your income. If you don’t have a family you might simply want to leave the property to someone you care about as part of your estate.
If you have people that depend on your income, then life protection is something essential that could guarantee your loved ones and dependants that some sort of income is still available in the event of your death. You could equate life protection as something which is similar to an ‘inheritance’ for potential heirs. This way you wont have to worry about whether your dependants are financially stable after your death, and they can continue life without having any future financial concerns.
In the UK you are eligible for your own life protection policy once you are over the age of 18. From then on, there are no particular regulations as to when you should invest in it. However, many people commonly decide to invest in life protection if they have dependants/children to care for, investing in a property or if you were to die during the length of the policy, a life protection pay out can support those who rely on you financially – such as a partner, children or your own parents – with ongoing living costs like mortgage or rent and bills.
Getting life protection sooner is usually cheaper, provided you’re in good health, as insurers base their premiums on age as well as health and lifestyle factors. Everyone’s situation is different, but the best time to consider life protection is when other people rely on you financially.
What can life protection cover?
It’s important to understand what your life protection covers to give you the peace of mind that your family will have the financial support they need. Cover varies between providers, It’s a good idea to compare policies according to the protection they offer, as well as the price – this will ensure you’re getting the policy you need.
For more information, talk to our team of Experts
The policy you pick is dependant on your personal circumstances.
Life protection costs vary according to:
Once your policy has been agreed and is in place, your payments are guaranteed and won’t change unless you decide to opt out or request any changes to your current policy. Having life protection on hand will also provide a calming sense of ease to fall back on in the event of a sudden death, and wisely plan ahead for the future of yourself and your loved ones.
Your life protection is designed to cover a multiple of your salary so that your family can continue living a similar quality of life and do not suffer financial difficulty.
If you do not have life protection but have financial responsibilities such as a partner, children and a mortgage – you potentially risk leaving your family with a number of ongoing living costs which may not be affordable. This includes covering:
For instance, if you have a mortgage, there is the chance that in the event of your death, the income or savings you may or may not have will be enough to maintain any outstanding debts/payments -notably if dependants are reliant on your income. It may leave them with the burden of paying it off alone, or even risk losing property or remaining assets.
Whole life protection is useful in covering the entirety of your life. In turn, this type of insurance can be more costly as the provider is aware of the certainty of you passing away, whether it be in 4 years time or in 40 years time.
Decreasing-term life protection is a cheaper form of policy that pays out less as time goes on. If you pass away near the beginning of the insurance term, your loved ones will receive more money than if you pass away near the end. Because the sum insured decreases over time, monthly premiums tend to be much lower for decreasing-term life protection policies.
You should think carefully about how long you need cover for. Some people decide to get life protection to cover the length of a mortgage term; say, 25 years, while others think about how long their children will be financially dependent on them. Ultimately, it’s a personal decision and you should factor in your family’s unique circumstances.
Yes, there is nothing to stop you having more than one life protection policy. In fact, you can have as many policies as you want. However, if you find your situation changes in the future it’s sometimes possible to adapt your existing policy. For example, if you have a life protection policy, you may be able to increase your cover without the need for further medical information on certain life events.
You can also request to make other changes, such as changing the term, the amount of cover, removing a name from a joint policy or even changing your premium payments from monthly to annually. So there is nothing to stop you from taking out more than one life protection policy.
Life protection costs vary according to how much cover you need, your age, and other factors such as your health history. For instance, if you have a history of smoking, this can also increase your life insurance costs as the risk of death is greater. Lifestyle factors such as dangerous jobs and hazardous hobbies are also taken in to consideration.
Once your policy has been agreed and is in place, your premiums are guaranteed and won’t change unless you make any changes.
Many people who have dependants such as partners or children who are reliant on their income, often feel it is the best time to invest in life protection. This is notably to consolidate financial security for dependants in the event of a significant persons death. Especially if they cannot cover the cost of any outstanding debts left behind by the deceased, such as bills, mortgage payments or personal loans.
