Life insurance is one of those things that we know we should probably get, but perhaps don’t know when it is the right time to get it. According to many impartial and objective advice organisations, such as the Money Advice Service, here are the 6 most important times in your life to have life insurance.
- When you are getting married
If you have a long-term partner or you are thinking about getting married, this might be the time to start thinking about life insurance. This is because a life insurance can help your partner to deal with day-to-day life and its costs in the event of your death.
You may want to consider a single policy, which covers just yourself, or take out a joint policy for both you and your partner. Joint policies are often cheaper than taking out two single policies, however most joint policies will only pay out once, meaning the surviving partner will have to take out a new policy.
Joint policies might also lead to difficulty in the event that the relationship breaks down. For this reason, it can be a much better decision to take out two single policies, so that you can be rest assured that everyone is covered in all eventualities.
- If you are having a child
Providing for and raising a child can be an expensive task! However, have you ever thought where that money might come from if you die? To make sure that your child is provided for once you have departed, take out a life insurance policy to give you peace of mind.
- Once you get a job
Many employers nowadays will offer an employee benefits package which includes death in service. This is a type of insurance that can pay out a lump sum of up to five times your salary if you die whilst in that particular employment.
If you are on the payroll at the time of death, you will qualify for this payment. Death in service can benefit any dependents you leave behind and might also cover your employers who will be left with the impossible task of finding someone good enough to replace your duties.
- When you have bought a house with a mortgage
A life insurance policy can help your family living in a house with a mortgage that you pay to keep up with the payments once you have departed. This ensures that your dependents stay financially stable and keep a roof over their heads.
- As you start to get older
We are most likely to take out life insurance policies as we get older, and unfortunately start to consider our mortality. Statistically, the demographic most likely to take out life insurance are those aged 45-55. The least likely to have life insurance are young adults aged 18 to 24, though there is no minimum age you need to be to take out life insurance.
- You are starting to worry about your funeral expenses
Though it is morbid to think about, funerals can be a costly expense for your loved ones. Life insurance policies can help your dependents to cover your funeral expenses once you are gone, giving you the send of that you deserve.
And there you have it – the 6 most important times and milestones in your life where you should consider life insurance.