Search: Risky occupations and life insurance
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The summer is here and with it come the usual glut of summer babies (it was Christmas and New year almost nine months ago!). So it's time to start thinking about the future of your new, or existing, family. Finding the right insurance policy, especially in the case of life insurance, can be quite a long procedure which people tend to put off.
With the help of an insurance comparison company there's no longer any need to procrastinate. The daunting process becomes quick and easy and before you know it, you're mind is at rest.
Two parties who need to consider life insurance:
1. Breadwinner
2. Stay-at-home parent/Spouse
Why get life insurance?
Whether you are the breadwinner or the stay-at-home spouse/ parent you need to think about life insurance if you want to make sure your loved ones are protected, should you disappear one day.
It is also important to consider enabling your family to maintain the lifestyle they have become accustomed to. Life insurance guarantees that the family members that depend most on you will be looked after in the event of your unexpected death, whatever role you may have played in their lives.
When to get life insurance?
As time goes on, individual values change and major, often life-changing events greatly affect what we acquire and own. For example, moving in with a partner will typically increase the value of your possessions by 65% whilst having a child adds a further £2000 to your assets.
The latest research shows that the 46th birthday is the entry point into most Brits 'golden age', when one has everything or almost everything they've always wanted. By this age most people own their home, have a family and are settled in a career.
If you are the breadwinner think about the fact that:
• If you die, unpaid mortgage repayments, medical bills, credit card loans and other debts will still have to be paid. Your debts will become the responsibility of your family.
• If your spouse is a non-earner and is suddenly left with out standing payments and children to bring up, not only will they have to rely on insurance coverage but they may also have to consider getting a job, which would require training; costing them time and money.
• If your children are still young when you die, you may not have had the chance to start understanding or paying all the considerable expenses required for their upbringing. Education can cost thousands of pounds per child between preschool and university and that doesn't even include extra activities such as football and ballet, nor does it include food and clothing.
If you are the stay-at-home parent/spouse, think about the fact that:
• The contribution a stay-at-home mother makes is valued to be between £20 and £30 thousand per annum. We must recognise that being a housewife or househusband is a job in itself, and should therefore not be disregarded when reviewing finance and insurance for the family.
• Imagine that you are suddenly faced with having to fill the potentially huge gap left by the departure of the non-earning parent in your financial planning. It is both the income earner's and the non-earner's responsibility to think about the future of their family and to take the right precautions.
• Your children may now need a nanny or a nursery and the maintenance of your household may require the employment of domestic help. The breadwinner, your widowed spouse, is now faced with having to continue supporting the family as well as shelling out even more for extra care that might be needed for the children and the house
*The general rule is that you should insure enough to acquit any debts as well as provide a minimum of £100,000 for each charge.
How to get the right insurance:
• Once you have life insurance cover, be sure to check it on a regular basis. Remember, insurance requirements change over time and any alterations to your personal circumstances will affect what kind of policy you need.
• If you already have a policy and decide to change insurers, make sure your new policy is up and running before you cancel your existing one.
• Ensure that you take into account and disclose all details regarding adverse family medical history, lifestyle risks and pre-existing medical conditions in order to find the best coverage for your individual profile.
• Instead of spending hours calling different companies looking for the right policy, insurance comparison websites will carry out a search amongst the leading life insurers. In a matter of minutes they will provide you with a competitive quote and insurer, who can also provide any further advice you may require.
