Rising inflation, increasing energy and fuel prices and extra on VAT means many are struggling to make ends meet.
The trouble is, when parents get older, they start to think about protecting their families and loved ones only to find that if they had made the same decisions earlier, they would have saved a lot of cash.
Life insurance is he solution, but most of us put off taking out a policy and try to persuade ourselves that it’s too expensive, doesn’t pay out and the worst only happens to other people anyway.
How much cover you need depends on your personal financial circumstances, but here are a few points to consider if you want to take out some cover:
Start as soon as you can
You will never be able to life insurance any cheaper than it costs for you today. Cost are based on age and risk, and as you get older every day, the price goes up as well.
Cover your mortgage
Paying off your mortgage is the first priority as it secures your home for your family and is probably the biggest monthly outgoing. That reduces the stress of finding a high-paying job for your partner.
Don’t forget cards and loans
It’s a good idea to clear your car loan and any other credit with your life insurance for the same reasons as wanting to clear your mortgage; peace of mind, security and less stress for your partner and loved ones.
If your partner needs to work, childcare can be a real financial burden and a stumbling block to taking a good job.
These seem to be ever increasing; a lump sum for each child that can be invested or spent on university fees gives your children financial freedom.
Income protection and critical illness
These are long term insurances that generate a monthly income if you cannot work due to accident, sickness or illness. Don’t confuse them with redundancy or sort-term sickness cover that generally run out after a year.
Life insurance can work out a lot cheaper than you imagine; but it’s best to start with your wish-list then prioritise your needs.
If you are married or living with a partner, you may find cheaper life insurance by taking out your own policies rather than joint life cover.