Around 8.5 million adults in the UK with dependents do not have life insurance, meaning that in the event of death, those who rely on their income could find themselves in serious financial difficulties.
The reasons why people don’t have life insurance are varied, from people who think they can’t afford it, to people who believe their medical history means they won’t get cover, to those who simply haven’t got round to it, or don’t want to think about their own mortality.
However, planning for how your dependents will be provided for financially in the event of your death is not something you should ignore. Life insurance is often much more affordable than people imagine (our policies start from just £2.20 per week) and the consequences of not having it can be severe for your loved ones.
No matter who you are, how old you are, or your previous medical history, with the right life insurance advice, you will be able to get some form of life insurance to give you and your dependents peace of mind, whatever happens.
The following are 10 key reasons why you need life insurance and why you shouldn’t keep putting it off any longer.
1. Replacing your income
One of the most basic reasons to have life insurance is to replace your income, so your family’s basic day-to-day living costs are covered when you are gone.
One in four UK families have less than £95 in savings, meaning the loss of your income could quickly push your dependent into financial hardship. Life insurance helps to ensure that doesn’t happen, giving your family time to plan and adjust.
2. Funeral costs
One thing many people fail to consider is the cost of their funeral. The average UK funeral costs £3,675, which is another financial strain for your family at an already difficult time. Life insurance can easily cover the cost of your funeral, helping to ease the stress on your family.
3. The cost of raising children
It costs around £230,000 on average to raise a child in the UK, something which can be a real struggle on a single income. Life insurance helps to make sure the cost of giving your children a decent start in life is covered, so you don’t have to worry about them going without in the event of your death.
4. Paying off your mortgage
Average UK mortgage debt varies from between around £80,000 to £215,000 depending on where you are in the UK. Mortgage repayments can quickly become a major problem in the event that one of the homeowners dies, potentially leaving your family with the difficult decision of having to sell up and move, adding to their distress.
With our life insurance cover, you can get up to £100,000 tax-free as a lump sum, which can help pay off some or all of your mortgage, leaving your family in a much better financial position.
5. Paying off other debts
The average UK household owes £12,887 in debt, not including their mortgage. Again, the repayments on these debts can quickly become unmanageable if your salary is no longer there, so life insurance can help to clear these financial burdens.
6. Paying for your children’s education
Even if your children go to state school, there are still all sorts of expenses to consider. Uniforms alone cost an average of £316 per child per year. You also have to take into account all the other essentials, such as books and stationary, bus passes, schools trips and more. If you have school fees to pay, these add even more to your ongoing expenses.
Life insurance can make sure these education costs are covered, so your children don’t have to go without while they are at school. It can also help provide money towards their university education, helping to reduce the financial pressures on your children if they carry on into higher education.
7. Protecting your business
If you have your own business, the extra cash can help keep it afloat while your dependents/co-owners decide how to move forward. Many businesses fold after the death of the owner or one of the owners, which can mean that a company you spent years building up suddenly ends up being worthless.
A life insurance payout can allow your business to keep going while you bring new management in, or allow you time to sell off the business as a going concern, so your family see a return for all your hard work.
8. Covering inheritance tax
The average inheritance tax bill is over £170,000.Although this is often not a major concern for those who are married, due to the inheritance tax exemption for married couples, it may be worth planning for depending on your circumstances.
Life insurance can help settle your inheritance tax bill, meaning your dependents will get more as well as making it easier for them to resolve probate.
9. Leaving a legacy
Most of us support various charities throughout our lives and many of us like the idea of leaving a legacy donation when we pass away. If you do not have immediate dependents who need the full value of yourlife insurance payout, you can instead nominate a charity to receive some or all of your life insurance money.
10. Peace of mind
One of the most important reasons to take care of your life insurance is that it gives you peace of mind that your loved ones will be provided for when you are no longer around and that your death will not push them into financial hardship.
Get the right life insurance advice and sensible life insurance planning can ensure that your dependents are taken care of after you are gone, giving you one less thing to worry about.
Get an affordable life insurance policy, whoever you are
Essential Supplementary Medical Insurance (ESMI) provides health protection insurance and life insurance to both individuals and businesses. This means you and your family can be financially secure in the event you become unable to work due to an accident or sickness, or if you pass away.
We offer essential life insurance advice and all of our insurance products are guaranteed acceptance, which means we will cover you no matter your medical history. Our fast, simple online application system makes it easy to get covered quickly and we don’t bump up our premiums based on your job or how much you drink, unlike many other life insurance providers.
We keep our policies clear and simple, so you know exactly what you are getting, and we offer a 30-day money back guarantee for complete peace of mind. You can also cancel your policy at any time after the first 30 days, giving you complete flexibility with your cover.
Apply now to make sure your family is protected, no matter what. If you would like to find out more about our policies or service, please don’t hesitate to get in touch.