{"id":89,"date":"2020-04-09T12:28:25","date_gmt":"2020-04-09T11:28:25","guid":{"rendered":"https:\/\/www.robertbrucefp.com\/blog\/?p=89"},"modified":"2020-04-09T12:28:25","modified_gmt":"2020-04-09T11:28:25","slug":"life-insurance-protection","status":"publish","type":"post","link":"https:\/\/www.robertbrucefp.com\/blog\/?p=89","title":{"rendered":"Life insurance protection"},"content":{"rendered":"

How secure would your family\u2019s future be in the event that you were no longer around?<\/strong><\/p>\n

Given the current situation during this difficult and unsettling time with coronavirus (COVID-19), it\u2019s important to think about how secure your family\u2019s future is in the event that you were no longer around. Understandably, we would rather not think of the time when we’re no longer around, but this crisis has highlighted the importance to protect the things that really matter \u2013 like our loved ones, home and lifestyle \u2013 in case the unexpected happens.<\/p>\n

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The outbreak of the coronavirus may mean you have concerns about your life insurance and whether you\u2019re covered. If you have life insurance to provide for those left behind after your death, it\u2019s important to keep paying the premiums, even if you\u2019re tempted to put it on hold to cut costs. You could lose your cover and may struggle to find the same level of cover if you start another policy later on.
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\nFull replacement value <\/strong><\/p>\n

For many of us, projecting ourselves into the future to see what\u2018s around the next bend is not an easy thing to do. However, without thinking, we insure our cars, homes and even our mobile phones \u2013 so it goes without saying that you should also be insured for your full replacement value to ensure that your loved ones are financially catered for in the event of your unexpected death. Making sure that you have the correct type and level of life insurance in place will help you\u00a0to financially\u00a0protect your\u00a0family.\u00a0<\/p>\n

Life insurance provides a safety net for your family and loved ones, helping them cope financially during an otherwise difficult time. Ultimately, it offers reassurance that your family would be protected\u00a0financially should the worst happen.<\/p>\n

We never know what life has in store for us, so it\u2019s important to get the right life insurance policy. A good place to start is asking yourself three questions: What do I need to protect? How much cover do I need? How long will I need the cover for?
\n\u2028Financial safety net<\/p>\n

It may be the case that not everyone needs life insurance. However, if your spouse and children, partner, or other relatives depend on your income to cover the mortgage or other living and lifestyle expenses, then it will be something you should consider. Life insurance will make sure they’re taken care of financially. <\/p>\n

So whether you’re looking to provide a financial safety net for your loved ones, moving house or you\u2019re a first-time buyer looking to arrange your mortgage life insurance \u2013 or simply wanting to add some cover to what you’ve already put in place \u2013 you’ll want to make sure you choose the right type of cover. That’s why obtaining the right professional advice and knowing which products to choose\u00a0\u2013 including the most suitable sum assured, premium, terms and payment provisions\u00a0\u2013 is essential.
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\nSufficient life insurance<\/strong><\/p>\n

The appropriate level of life insurance will enable your dependents to cope financially in the event of your premature death. When you take out life insurance, you set the amount you want the policy to pay out should you die \u2013 this is called the \u2018sum assured\u2019. <\/p>\n

Even if you consider that currently you have sufficient life insurance, you\u2019ll probably need more later on if your circumstances change. If you don\u2019t update your policy as key events happen throughout your life, you may risk being seriously under-insured. <\/p>\n

Protection will inevitably change<\/strong><\/p>\n

As you reach different stages in your life, the need for protection will inevitably change. How much life insurance you need really depends on your circumstances \u2013 for example, whether you\u2019ve had a mortgage,\u00a0you\u2019re single\u00a0or have children. Before you\u00a0compare life insurance, it’s worth bearing in mind that the amount of cover you need will very much depend on your own personal circumstances, such as the needs of your family and dependents.<\/p>\n

Ask yourself:<\/strong><\/p>\n

Who are your financial dependents \u2013 your husband or wife, registered civil partner, children, brother, sister, or parents?
\nWhat kind of financial support does your family have now?
\nWhat kind financial support will your family need in the future?
\nWhat kind of costs will need to be covered, such as household bills, living expenses, mortgage payments, educational costs, debts or loans, or funeral costs?<\/p>\n

There is no one-size-fits-all solution, and the amount of cover \u2013 as well as how long it lasts for \u2013 will vary from person to person. <\/p>\n

These are some events when you should consider reviewing your life insurance requirements:<\/strong><\/p>\n

Buying your first home with a partner
\nCovering loans
\nGetting married or entering into a registered civil partnership
\nStarting a family
\nBecoming a stay-at-home parent
\nHaving more children
\nMoving to a bigger property
\nSalary increases
\nChanging your job
\nReaching retirement
\nRelying on someone else to support you
\nPersonal guarantee for business loans <\/p>\n

Current standard of living<\/strong><\/p>\n

The premiums you pay for a life insurance policy depends on a number of things. These include the amount of money you want to cover and the length of the policy, but also your age, your health, your lifestyle and whether you smoke. <\/p>\n

If you have a spouse, partner or children, you should have sufficient protection to pay off your mortgage and any other liabilities. After that, you may need life insurance to replace at least some of your income. How much money a family needs will vary from household to household, so ultimately it\u2019s up to you to decide how much money you would like to leave your family that would enable them to maintain their current standard of living. <\/p>\n

Two basic life insurance types <\/strong><\/p>\n

There are two basic types of life insurance: \u2018term life\u2019 and \u2018whole-of-life\u2019. However, within those categories, there are different variations. <\/p>\n

The cheapest, simplest form of life insurance is term life insurance. It is straightforward protection \u2013 there is no investment element, and it pays out a lump sum if you die within a specified period. There are several types of term insurance.\u2028
\nThe other type of protection available is a whole-of-life insurance policy, designed to provide you with cover throughout your entire lifetime. The policy only pays out once the policyholder dies, providing the policyholder\u2019s dependents with a lump sum, usually tax-free. Depending on the individual policy, policyholders may have to continue contributing right up until they die, or they may be able to stop paying in once they reach a stated age, even though the cover continues until they die. <\/p>\n

Remove the burden of any debts <\/strong><\/p>\n

Generally speaking, the amount of life insurance you may need should provide a lump sum that is sufficient to remove the burden of any debts and, ideally, leave enough over to invest in order to provide an income to support your dependents for the required period of time.<\/p>\n

The first consideration is to clarify what you want the life insurance to protect. If you simply want to cover your mortgage, then an amount equal to the outstanding mortgage debt can achieve that. <\/p>\n

To prevent your family from being financially disadvantaged by your unexpected death, and to provide enough financial support to maintain their current lifestyle, there are a few more variables you should consider: <\/strong><\/p>\n

What are my family expenses, and how would they change if I died?
\nHow much would my family expenditure increase on requirements such as childcare if I were to die?
\nHow much would my family income drop if I were to die?
\nHow much cover do I receive from my employer or company pension scheme, and for how long?
\nWhat existing policies do I have already and how far do they go to meeting my needs?
\nHow long would my existing savings last?
\nWhat state benefits are there that could provide extra support to meet my family\u2019s needs?
\nHow would the return of inflation to the economy affect the amount of my cover over time?<\/p>\n

Don\u2019t leave it to chance<\/strong><\/p>\n

Since the outbreak of COVID-19, some insurers are restricting cover for new applicants and have introduced new questions to their application forms. This has been done in order to establish and manage the insurance risks it poses. Planning for a time when you\u2019re no longer around may seem daunting. It doesn\u2019t have to be. Don\u2019t leave it to chance.<\/p>\n","protected":false},"excerpt":{"rendered":"

How secure would your family\u2019s future be in the event that you were no longer around? Given the current situation during this difficult and unsettling time with coronavirus (COVID-19), it\u2019s important to think about how secure your family\u2019s future is in the event that you were no longer around. Understandably, we would rather not think … Continue reading “Life insurance protection”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/89"}],"collection":[{"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=89"}],"version-history":[{"count":1,"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/89\/revisions"}],"predecessor-version":[{"id":90,"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/89\/revisions\/90"}],"wp:attachment":[{"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=89"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=89"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.robertbrucefp.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=89"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}