There is a huge debate raging at the moment relating to life insurance. While the concept has been around for many years, most people fail to take out a policy at any point in their life. Does that mean life insurance isn’t essential? We wanted to find out whether it would make more sense to buy a policy or simply save the money in your accounts. Our findings should help to highlight whether or not that form of cover is worth the expense. We’ll present you with our conclusion at the bottom of this page. Before we do that though, it’s time to take a look at the cold hard facts.
Life insurance involves low monthly payments
One of the main benefits of buying life insurance online is that you only have to pay small monthly payments. The companies that provide those policies make their money because most people never make a claim. However, those who do tend to receive a lot of cash that is usually more substantial than their investment. That means people who only pay around £1000 into the policy before something bad happens could still see their spouse getting a full payout if they pass away. That makes it much more sensible than simply saving the money in your bank account.
Life insurance in untouchable
Life insurance for people over 40 is often a wise purchase because the chances of becoming ill will increase. However, there is something more important to consider. When someone dies, their estate is often broken up in order to pay any debts they might have accumulated during their life. That means that any savings in the bank could soon fizzle away and disappear. No matter how much debt you might have built-up over the years, your life insurance policy is untouchable. That means your loved ones will get the full payout regardless of your personal situation at the time. It is another good reason saving the money in your bank account simply won’t work.
Life insurance will help your family
When a loved one passes away, it is not just the emotional stress that makes people struggle. You also have to think about the financial issues that will arise. Presuming you have not yet paid your mortgage, the people you leave behind might have trouble meeting the payment schedule. That is because you once had a two salary household, but now money has become very tight. A lump sum paid out from a life insurance specialist could help them to pay the mortgage off and get some breathing space. At the end of the day, the situation will be different depending on the state of your finances when you die. However, the right insurance policy could provide a much-needed lifeline.
To answer the question posed in the title of this post, yes, life insurance is worth the expense. In fact, it’s more than worth any money you have to spend. Just make sure you always read the small print to ensure you are getting the best deal possible.
Catch you back here tomorrow for more informative posts!