[AD] Life insurance isn't the most thrilling of topics! I get it, but it's important and something I've not been able to get out of my mind recently.
With the impending house move, my husband and I have been neck deep in different insurances. We have various different policies to consider, which has felt even more exasperating this time around. Our situation has changed somewhat since buying our first house. We now have two extra small humans to consider and being freelance I no loner have a 100% stable income coming in.
Admittedly looking at different life insurances felt really daunting at first. There seem to be so many different policies out there. However with a little research and educating ourselves on the different policies available, I feel like we've finally cracked it.
[Photo by Natalya Zaritskaya on Unsplash]
What is life insurance?
In a nutshell, life insurance is a way to provide for your family once you’re gone. Imagining the financial repercussions your passing could have on your loved ones isn't what we typically want to spend our days doing. It's understandably a difficult thing to think about, but equally one that's so important to discuss. We need to talk about life insurance.
The right policy for you is determined by a variety of factors:
- Age.
- Any health conditions you may have.
- Lifestyle.
- Children/grandchildren.
- Mortgage terms.
Types of life insurance.
Life insurances come in many different shapes and sizes. There are six different types of policies available from Protect Line.
Protect Line is one of the UK's leading fee-free Life Insurance Brokers. With over 30,000 five star reviews on Trustpilot and multiple consumer awards. They're one of the most trusted.
Level term.
Level Term is a policy where your cover amount doesn’t change and stays ‘level’ throughout the duration that you have the policy. This means that your premiums are fixed - the price you pay doesn’t increase or decrease as the policy progresses.
Decreasing term.
Decreasing Term (or mortgage protection) is a policy where your cover amount goes down or ‘decreases’ over time which in turn lowers the monthly premiums throughout the duration of the policy. This means that your premiums decrease.
Critical illness.
Critical Illness Cover exists to safeguard your family if you became unable to work due to illness. We don’t know what life will bring us from one day to the next, but critical illness cover is a way to prepare against the worst happening.
Whole of life.
Whole of life is a policy where you’re guaranteed a pay-out from the insurer whenever you die. This is due to the policy having no expiration date. As long as you pay your monthly premiums, you can relax knowing that there is enough money aside to cover whatever you may leave undone.
Over 50's non medical.
Over 50s non-medical is a policy where you’re guaranteed to be accepted if you’re between the ages of 50 and 80. Because it’s a non-medical plan, this means you don’t have to submit a doctor’s report or agree to a medical examination before taking out the policy, making this policy suitable for those who may have been unsuccessful applying for other forms of life insurance cover.
Joint cover.
Joint Cover describes one policy which is taken out by two people, usually a married, civilly married or cohabiting couple. It can be chosen as a feature on any standard life insurance policy (excluding over 50s plans), but is commonly taken out with Mortgage Protection.
Why life insurance is important to me.
Life insurance helps you prepare for the unexpected. It ensures a roof is kept over your loved ones heads and financially protects your family when they need the support most.
Without sounding morbid, if anything were to happen to my husband I know financially that I'd really struggle. My wage can be quite irregular and differs from month to month. Unfortunately even on my better months I couldn't support two children and pay the mortgage.
I'm at peace with that and understand the severity of what could be a possibility. With that in mind we've ensured that both of us have the correct insurances to cover us if anything were to happen. We'd both struggle, however by taking out the correct life insurances, finances aren't going to be a worry for us.
Do you currently have a family life insurance policy?
We have a life insurance policy! We do need to change our will now that Leo is here though. Why does it have to cost so much though!
Corinne x
Oh i know! Ours is pretty pricey & neither of us have ill health. X
I don't have life insurance but have been thinking about the possibility that if something would happen as you said, you never know if you would be able to pay for everything. Will look more into it as it's a safe net to leave behind for your family for sure, thanks for sharing x
That's it isn't it. It's horrible to think about, but you never know what's going to happen. X
This is so important to share! I currently don't have life insurance but when I move out of my parents, it's definitely something I'll consider xx
Definitely! It can be so so worthwhile. X
Luckily, or I guess unluckily, depending on your perspective, I've never had to worry about life insurance. I don't have a family and I'll likely never be able to afford a home, so I'll likely never need life insurance. But should I, it's good to know there are fee-free Life Insurance Brokers out there
We took our life insurance as covid hit the UK last year which is very morbid but glad we did. Arran works in insurance so no brainer for us
Ah that's good that he's in the know. We were both pretty clueless before the house move. X
Super important topic to talk about, one that I know very little about so this has been useful! Great post, I'm sure lots of people will appreciate the reminder 🙂 x
Thank you! I thought just covering the basics would be a great way to start, because it can feel like a minefield out there. X
I don't have life insurance but things like this is something I've been thinking about a lot recently. Not in a morbid way but like, I've never really planned that far ahead before but I realised I probably should!
No, I know what you mean. I think it's one of those jobs that's on your mind, but you can put off for such a long time. It took us a long time to get around to it. X
Life insurance is so important! I never really knew the importance of it until I had my son and the thought of anything happening to me was terrifying not knowing if he would be ok or not. Such a great post with terrific points!
Thank you! As soon as you have kids it's a totally different story isn't it. So, so important. X
Yes, yes and triple yes to everything you've said! It's something that needs to be done for everyone. Mine is bloody expensive but soo important to have!
Rosie
Ohh I know. Ours is expensive, but it's such an important thing to have. X
This is a really interesting post. I don't currently have life insurance but my nan did and it was definitely a blessing to have that in place.
Hi Claire,
It's basically down to a spot of risk assessment, isn't it? If you have a huge mortgage and children then I think that it is pretty much a necessity. If you are renting a house and have no kids, or are young and still living at home with your parents, then you probably don't need it.
It's one of those things that often gets put off until some unspecified time in the future but really shouldn't be. Two other things to add to that list (and which also should receive your attention sooner rather than later!):
* Personal pension provision (effectively a way of ensuring that you can live comfortably in later life)
* Inheritance Tax planning (you've paid tax all of your life - why pay more when you die too?!)
We've been looking into life insurance lately, we are currently shopping around though!
Such an informative post, I have a chronic illness and when I have contacted insurance companies, they charge so much for people like myself and it's so annoying! x
Lucy | http://www.lucymary.co.uk
Great informative post, Claire! Life insurance is so important and we don't have separate policies but our benefits include a bit! We're looking into it soon! Thanks for sharing x
Lynn | https://www.lynnmumbingmejia.com
I honestly never thought about life insurance. My partner has it but it’s just something I never got around to even looking into or consider how important it can be! This post is insightful about it all.
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