What are the Benefits of Life Insurance?
Choosing to take out life insurance is a big commitment – you’re going to be paying premiums for the entirety of the term, whatever that may be, so it’s natural that some people are hesitant at first. There is no need to be, though, because the benefits of life insurance far outweigh any possible disadvantages.
With the right advice from our trained advisers here at Quick Quote, you could take out the best life insurance policy for your personal situation in no time.
Whether you want to protect your mortgage, secure your family financially in the event of your passing or cover your income if ever you’re diagnosed with a critical illness, there’s a life cover policy for you, and they all come with several different benefits.
Main life insurance benefits
Although each policy differs slightly, the main benefits of life insurance are that it:
- Gives you peace of mind that your dependants will cope financially if you’re no longer around
- Provides financial security for loved ones (and yourself, in some cases)
- Can clear debts in a time where we have many financial commitments (subscriptions, direct debits, etc.)
- Provides clarity in terms of what we’re leaving behind (and to whom)
- Can help you or your family financially if we experience a loss of earnings, particularly if you have insufficient savings
- Can cover the cost of a funeral if you wish
Financial security and help dealing with a loss of earnings
If you pass away while you’re covered by whole of life or term cover, a pay-out amount agreed at the time of purchasing the policy will be provided to your loved ones in line with your wishes.
It is intended to help your dependants financially – whether that’s your spouse or children – in order for them to deal with the loss of your earnings without falling into hardship, and to cover any debts that you leave behind.
As difficult such a time will be emotionally, it could also become a financial struggle for the families of those without adequate life insurance in place, so it’s important that you take out a suitable policy as soon as it becomes necessary.
Peace of mind for the policyholder
Perhaps the most important benefit of life insurance is the fact that it provides the policyholder with complete peace of mind, knowing that they will have secured their loved ones financially for when they are no longer around.
Unless you take out critical illness cover, it’s unlikely that you will get any other physical benefit from the policy while you’re still alive. But the primary idea of most life insurance policies is to put a plan in place to secure your dependants financially, thus giving yourself a peace of mind in knowing that they will be able to cope following your passing.
Pay-off unpaid debts left behind by the policyholder
Whether it’s your mortgage or any other financial commitment or contract, your unpaid debts will eventually be passed on to your family members if they are not cleared when you pass away. Usefully, you are able to design your life insurance policy specifically to cover certain debts – people typically use term life insurance to cover their mortgage, for example.
This ensures that your family members aren’t struck by a hefty financial blow and can avoid the stressful process of dealing with your unpaid debts themselves, which would otherwise be the case if you had no life insurance.
Contribute towards the cost of a funeral
The average cost of a funeral in the UK is around £3,757, and without life insurance to cover the cost, it can place an unneeded and unpleasant financial burden on your family members at an already difficult time.
You can allocate a certain amount of your life insurance payout to cover the cost of your funeral, saving your family members potentially thousands of pounds. It means that policyholders get the send-off they deserve and family members of the deceased are able to grieve in peace.
Quick Quote – life insurance quotes
Here at Quick Quote, our trained advisers are able to provide you with impartial, no-obligation advice on all-things life cover.
Whether you are interested in knowing more about the benefits of life insurance, or would like to get a standard or over 50’s life insurance quote, our team are on-hand to help.
Simply complete the quick quote form and in less than 2 minutes you will have your indicative quote and have taken the first step towards protecting what matters most – to you.