05th September 2019

Why do people need life insurance?

For a lot of people, the answer to this question is quite simple, they are still unaware of the consequences of not having life insurance in place for their family. Some people don’t want to think about life insurance as they don’t want to think about dying or what would happen to their families finances, the consequences and the knock on affect that it will have for their family if they were to die with no life insurance.

Unfortunately, over the last 11 years within this industry I have had many clients life and critical illness insurance policies pay out from different insurance companies for death, cancer, heart attacks, strokes and other serious injuries so I have also seen the huge impact this has on the family’s finances. I have also seen the positive financial effect that having life cover and critical illness cover in place gives when this does happen.

Death and serious illness, let’s be honest, is a subject that no one really wants to think or talk about however the death ratio is still unfortunately 1 to 1 as nobody yet has managed to escape death. McMillan have stated that one in two people in the UK will get some form of cancer in their lifetime. This is a shocking statistic however it is something that you cannot ignore, you cannot ignore the statistics as they are real life. Unfortunately I personally know people who have been diagnosed with cancer as I’m sure most people reading this will have also, therefore, in my opinion everybody over the age of 18 should have some form of critical illness cover in place just in case it does happen to you as there is a 50% chance that it will.

Some of the responses I have had from clients when discussing life and critical illness cover have been:

“It won’t happen to me” or “I never get ill it won’t happen to me yet” or “It may happen to me when I’m older, I’m too young for that now”.

The reality is, people as young as 18 are diagnosed with cancer every day, even small children are unfortunately diagnosed with cancer which is horrific but all the more reason why people need to be aware of what cover is actually out there and what they need to do to protect themselves and their families.

At Bespoke Financial Newcastle, we can offer you appointments in the comfort of your own home or by telephone at a time to suit you. We will discuss your finances, your needs and your family situation so that we can determine how much cover you need and what type of cover is the most suitable and we will then design a package to suit you and your family.

If you simply go onto a price comparison site or you buy life insurance or critical illness based solely on price, most of the time you will only get what you pay for and the products that you have purchased may not be fit for purpose. The pay-out maybe too much or not enough. The term of the product might expire earlier than you require, or it may be longer than needed. When you buy online you are not receiving any advice therefore leaving your family’s financial future in jeopardy. If you use an adviser who is qualified and experienced within this field, they will design an appropriate package specifically tailored to suit you and your family’s needs. At the end of the day would you want to get this wrong? What happens if your cover was incorrect and it didn’t pay out enough or expired sooner than it should what are the consequences of this happening? Do you want to take that chance?

If you were seriously ill would you go to an unqualified Doctor or would you go to a Doctor who is highly qualified? I can imagine most people would answer the highly qualified doctor. When purchasing life assurance for you and your family why leave it up to somebody who isn’t qualified when you can go to a Financial Adviser like the team at Bespoke Financial Newcastle and use our qualified advisers. Our Advisers can talk through their experiences and give you upfront and honest advice tailored to suit you and your family’s needs all for free.

Another question you must ask yourself when considering life cover is if you were to die tomorrow could your partner and your children manage financially for the foreseeable future? If you have children, could your partner still raise them with the same quality of life? If you don’t have children, could your partner maintain his or her quality of life until retirement if you and your income were no longer there? Could your partner continue to stay in the same house paying the mortgage each month if you were to die and your income was removed? Do you have any savings or assets that you can cash in or your partner could cash in upon death? Maybe your pension has a death benefit, or you have a death benefit from work provided by your employer? These are all very valid questions when considering if you need life insurance or not.

In summary, life insurance is one of the most important things you will ever purchase as it brings peace of mind if heaven forbid you or your family ever need it. It could make a huge difference to the rest of yours and your family’s life from a financial point of view.

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