Life insurance coverage – are you worth more than your possessions?

Most people value their mobiles, gadgets, and other possessions more than their health and lives otherwise; they would surely spend more on medical and life insurance.

Here’s a simple test – when was the last time you looked at the cost and benefits of life assurance?

If you are honest, if you have ever looked up life insurance, you are one up on most people.

Compare that with checking out cover for your home contents, mobile or mp3 player.

You see, most of us do that at least once a year.

When you consider that without your health, life’s little luxuries are not worth having anyway, it’s strange that most of us don’t take insuring ourselves more seriously.

The depth of the problem is huge. For instance, taking just 2009, almost a million new mortgages were taken out, according to the Council of Mortgage Lenders.

In the same period, the Association of British Insurers record only 637,000 new life policies issued to cover mortgage debt.

That adds up to a third of the total, about 360,000 new mortgages, in one year alone unprotected if the key mortgage payer passed away or was too ill to work.

Working on a rough average, the CML reckons UK homeowners hold about 11.7 million mortgages. Even if one in five debts are not protected, that’s a staggering 2.34 million loans.

With the average mortgage standing at £130,000, the loved ones you leave behind will probably have to sell up to cover your uninsured mortgage debts.

OK, the point is accepted that not every mortgage needs life cover, but statistics show about half of all households are couples

Most singles probably don’t have to worry too much – but anyone who is married or a parent should consider what happens to their loved ones and families if they can’t work due to illness or death.

If you have good cover that looks after everyone if you are no longer able to pay the bills, then congratulate yourself.

After all, insurance is not as expensive as most people think and just a few well-spent pounds a month on life cover can make all the difference.

Don’t forget there’s no time like the present for buying insurance, because costs are based on age, lifestyle and health, and you will never be as young again as you are today.

That means you will never be able to buy insurance cover as cheaply again as you can today.

Modern health and life insurance comes in a vast array of products that can be as cheap or expensive as you want.

For most people, term life cover is affordable and effective insurance that pays out an agreed sum when a claim triggers the policy.

Options like critical illness cover can be built in at an additional cost.

Standalone policies accident, unemployment and sickness cover are also relatively cheap and offer emergency financial support.

Private medical insurance is also an affordable option offered by many employers or as personal cover.

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