The Importance of Life Cover for You and Your Family

Life cover, sometimes referred to as life insurance cover, is a simple way to make sure that in the event of your death, your family and loved ones are taken care of.

When buying a life cover policy, you can choose the amount of coverage you need, the length of the policy, and whether you would like to pay in instalments or a lump sum.

A financial adviser can help you complete a comprehensive financial review that takes into account your current assets, and estimates the correct amount of coverage your family will need after you’re gone. The policy will only pay out when you pass away, and it has no cash or investment value.

Critical illness cover, which is often packaged with life cover, pays out a lump, tax-free sum only in the event you are diagnosed with one of the covered illnesses.

While your own death may seem a remote concept now, we all know that accidents and tragedies happen. If something were to happen to you tomorrow, would your family have the money they need for funeral expenses, bills, childcare, mortgages, or tuition?

With life cover, you can rest easy knowing your loved ones have a parachute to help them through the transition. Regardless of whether you are the sole breadwinner or a co-provider, full-time or part-time, the loss of your income will likely make a dramatic difference to your household and its daily functions.

The benefit of life cover to the policyholder is obvious: peace of mind. Nobody wants to worry about their family’s long-term future, or passing their debts onto their children.

Ask yourself these questions: Does your family depend on your income? Do you have elderly parents who depend on you? Would your spouse be able to pay the bills on their own? What would happen if you were to come down with a serious illness?

Many people think they have plenty of time to get life cover later, but the sooner you purchase a policy, the sooner you can rest assured you and your family are covered for any unfortunate eventualities.

There are also a multitude of benefits to the family you leave behind. First, they receive a cash infusion to offset expensive funeral costs, which can be in the tens of thousands. Second, your outstanding debts are covered, from car payments to mortgages. This means your children and spouse won’t be burdened with debts.

Life cover can also make sure estate and inheritance taxes are taken care of. And if you have a business, it is essential to buy life cover to protect the legacy you’ve worked so hard to build.

Life cover can even help you plan your children’s educations.

The different life cover options available to you can be overwhelming, and you’ll want to make sure you are purchasing adequate protection for your family’s needs.

Get the financial advice you need today to cover your future tomorrow. Call today to book a free, no obligation consultation with one of our advisers at Downton and Ali in Dartford.