Why is Life Insurance so important?
Life is full of unforeseen circumstances which can affect your plans. Life insurance may help you to meet your financial goals and obligations if you lose your ability to earn an income.
Life insurance helps alleviate the financial burden your family may be left with after your death. Usually paid as a lump sum, your dependants may use this money to assist with medical costs, funeral expenses or help secure their financial future.
The cost depends on the amount of cover (age, gender and smoking status are also determining factors) you choose.
The level of cover you have should be reviewed regularly to ensure it remains suitable.
To make a decision on how much cover you require, you should consider the following:
- your children’s school fees
- services you would require if you were unable to care for your children, such as a nanny
- how much your dependants would require to meet their day‑to‑day living expenses, and
- current liabilities, such as your mortgage.
Life insurance forms a critical part of the financial planning process, providing financial security for you and your family. A sound financial plan will encompass both wealth creation and wealth protection.