16 December 2020
Reading time: 5 minutes
If you are debating whether to take out life insurance, here are five top reasons people decide to do so.
1) Pay for your funeral costs
With the average funeral now costing £4,184* (rising to £9,263 once professional fees, venue hire, flowers, catering, limousine hire and a memorial stone are taken into account), it can be reassuring to know there will be a lump sum paid on your death to go towards these expenses. Even more so when you consider that only four in ten people have put away enough to pay for their funeral - and that eight in ten families don't compare quotes from funeral directors to find the best option.
Life insurance provides a lump sum payout that can spare your loved ones the stress of footing the bill.
2) Settle the mortgage
If you have a joint mortgage with your partner, they will be liable for making the outstanding payments after your death. A life insurance payout could help meet those payments or even pay off the mortgage altogether so your family can remain living at home without a financial struggle.
3) Leave money for your loved ones
Even if you don't have any other assets to pass on you can create an inheritance by taking out a life insurance policy and naming your family as beneficiaries, helping to secure their financial future.
4) Leave money to a good cause
Life insurance can also provide a payout for you to leave to a charity or other good cause. This can be the case with Term Life Insurance, Whole Life Insurance or Over 50 Life Insurance as long as you name the charity among your beneficiaries.
5) It is not as expensive as you think
Monthly payments make life insurance premiums surprisingly affordable, as you can set them to suit your budget. The amount you pay and over what period will determine the lump sum paid out on your death. For example, Royal London offers Term Insurance from £7 a month and Over 50 Life Insurance from £3.95.
Looking to financially protect your loved ones? Find out more about your life insurance options here.
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