Do you have the life cover you need?

If you have a partner, children, or other family who are dependent on your income to cover not only the mortgage but also living expenses, then you almost certainly do need life insurance, since it will help provide for your family in the event of your death.

But do you have the right cover in place?

There are lots of different types of life insurances/assurances out there, with different options and benefits attached to them to be used in different situations e.g., ones that decrease in line with your mortgage, others that look to replace an income to your family should you pass away, ones that last until you pass away and ones that have a specific term. At Blackthorn Financial Services we can recommend the most suitable option for your situation.

Life Assurance

Whole-of-life cover as it is also known, is designed to last for the rest of your life. The monthly premiums are relatively high because the insurers know that they’ll have to pay out eventually.

There’s no term, so your beneficiaries are guaranteed to receive the pre-agreed amount when you die.

Life insurance

Life insurance is designed to ensure that the people who depend upon you will be looked after if you’re no longer there to provide for them.

Most life insurance policies are taken out for a set term, usually between five and thirty years. This could be arranged to coincide with your retirement, or with the date your mortgage is set to be repaid, or even when your children are no longer dependent.

Generally during the term of the policy, the policyholder pays the premium each month or sometimes just once a year. If they die, the life insurance pays their dependents an agreed lump sum. However, if you survive the term there’s no lump sum payable.

The amount paid out depends on the level of cover you buy. You decide how it is paid out and whether it will cover specific payments, such as mortgage or rent, or if it is to be used to help replace your income.

There are many variations on basic life cover. You can choose a level of cover that goes down, or up. You can have joint cover for yourself and your partner. You can even combine your life cover with other types of protections, such as accident cover, critical illness cover, and income protection.

Why do you need to review your existing cover, if you have any?

Since March 2020 many of us have found that we have faced big changes to our financial circumstances in the wake of Covid-19. Furlough, grants, unemployment and the disease itself have shown us how important it is to have the cover in place we need.

This means that even if you have cover in place, it could be time to review it, and if you don’t, it is time to ensure that you take out the correct cover for your situation.

Remember, the cost of life cover will vary with a number of factors including how old you are, your current state of health along with your occupation amongst other things. E.g., the younger you are when you take out cover, the less it could cost to get the protection you need.

With the pandemic’s effects touching so many of us across society and showing us how vulnerable we all are, many more people are looking at cover to protect themselves and their loved ones whilst ensuring that they have the correct types and amounts in place, with providers are offering new terms and products.

At Blackthorn Financial Services Ltd, we are experts at reviewing your situation and circumstances and making a recommendation for the cover that is suitable for your needs and putting in place this cover for you. Contact us now to discuss this area further with us.