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Secure your family's future for when you are no longer around....

August 2019


Your Guide To Life Insurance Protection

It’s not easy to think about how you would secure your family’s future if you were no longer around. Understandably, we would rather not think of the time when we’re no longer around. But it’s important to protect the things that really matter – like our loved ones, home and lifestyle – in case the unexpected happens.

For many of us, projecting ourselves into the future to see what‘s around the next bend is not an easy thing to do. But, without thinking, we insure our cars, homes and even our mobile phones – 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 to financially protect your family.

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 financially should the worst happen.

We never know what life has in store for us, so it’s 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?

It may be the case that not everyone needs life insurance. But 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.

So whether you’re looking to provide a financial safety net for your loved ones, moving house or you’re a first-time buyer looking to arrange your mortgage life insurance – or simply wanting to add some cover to what you’ve already put in place – 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 – including the most suitable sum assured, premium, terms and payment provisions – is essential.

Seriously Under-Insured

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 – this is called the ‘sum assured’.

Even if you consider that currently you have sufficient life assurance, you’ll probably need more later on if your circumstances change. If you don’t update your policy as key events happen throughout your life, you may risk being seriously under-insured.

Protection will inevitably change

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 – for example, whether you have a mortgage, and whether you’re single or have children. Before you compare 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.

Ask yourself:
  • Who are your financial dependents: your husband or wife, registered civil partner, children, brother, sister or parents?
  • What kind of financial support does your family have now?
  • What kind of financial support will your family need in the future?
  • What kind of costs will need to be covered, such as household bills, living expenses, mortgage payments, educational costs, debts or loans, or funeral costs?

 To view or download the full guide please click here

 To speak to one of advisers with regards to life protection or any other financial advice please call us on 01473 408422 or e-mail ifa@wmibl.co.uk