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Five reasons life insurance is worth it

Tue 06 Jul 2021

No one likes to think about a time after they’ve gone, but life insurance could offer reassurance and comfort for your loved ones if you die while covered, giving them peace of mind at a difficult time.

The cost of life insurance varies and this can mean many people don’t think about buying any at all, but this can be a mistake. It’s possible that your dependents or next of kin may become financially responsible for any outstanding debts or expenses like childcare costs, a mortgage, medical or care costs for elderly parents, or even to pay for your funeral. Even if you’ve been careful with your finances and have no outstanding debts, you may want to leave your loved ones a legacy towards their future.

There are different types of life insurance; some provide a fixed amount of cover for the whole term of the policy while others slowly reduce the amount of cover over time. Often, you can combine buying a life insurance policy with critical illness insurance or serious illness benefit to cover you if you are diagnosed with a serious illness such as a heart attack or stroke. The list of illnesses and the definitions used varies between insurers so check what illnesses are covered before buying.


Here are five good reasons to have life cover:

1. It can be surprisingly affordable

Contrary to what most people imagine, life insurance can be an inexpensive way to protect you and your family. It can be even less than you think.

You can buy life insurance yourself without advice. You can buy it online, over the phone, or via a paper application. If you choose to buy it through a financial advisor, then expect to pay a fee. The extra cost of a financial advisor might pay dividends in the future by helping you to reach a decision that works best for your situation.


2. It offers protection and peace of mind

With a policy in place, life insurance could pay out money to your loved ones when you die. They might use a payout from a life insurance policy to pay off an outstanding mortgage or cope with regular bills. If you have children, a partner or others who depend on you financially (such as an elderly relative), it can help make sure they’re taken care of if you die.

A life insurance pay out can be useful for loved ones after your death, because it will be a very difficult time, emotionally and financially. Having to worry about bills and debts while coping with the loss of a loved one is difficult, and a single amount of money can help to ease financial worries.

Also, some policies pay out early on the diagnosis of a terminal illness. This would enable you to spend time with loved ones without having the financial worry.


3. It’s guaranteed

As long as you continue to make the monthly payments and have met the terms and conditions of your policy, your dependants will be guaranteed a payout when you die.

You might want to check every couple of years that your cover is enough to take care of any outstanding debts or other expenses.


4. You never appreciate its value until you need to claim on it

When you are thinking of buying life insurance it can be difficult to pay for something that you think you might not need and that you personally won’t benefit from. However, you have peace of mind knowing that if the worst were to happen, your family would benefit from your decision to protect them financially even if you are no longer around.


5. You would need a lot of savings to get the equivalent payout amount

You could save or invest to build up an emergency fund. However, most people don’t have enough surplus cash, or the time to build up the same amount of money that a life insurance policy could pay out. A relatively small monthly payment can give protection and help the family with bills or debts.

Protecting your loved ones couldn't be easier

With Royal London Life Insurance, protecting your family couldn’t be easier. A ’no fuss’ one stage application process by phone or online is all it takes. Cover starts from £7 per month and has Terminal Illness Cover included at no extra cost.

Find out more >

Police Mutual is a trading style of The Royal London Mutual Insurance Society Limited. The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL

Type of article: Articles
Category: Protecting my family

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