Why You Should Consider Life Cover Insurance
Whether you call it life insurance or life cover insurance, many people have a good reason for taking out a policy. How does the average consumer know if life cover insurance is something that they need? We’ve devised a handy guide to help you determine whether you would benefit from a life cover insurance policy.
To begin, determine the main reason you might need it. For most people, it’s to provide the beneficiary with the financial means to carry on after they have passed away. As the main income earner, you choose the beneficiaries, usually dependents such as spouse and children, so that the benefit is paid to the people your income will usually provide for. This way you have peace of mind knowing your loved ones will be financially protected and provided for.
If you are not the breadwinner in the family, you may find having an income protected is not the only reason you want cover. A spouse who is not working may still wish to have a life cover policy, especially when there are young children in the family. This would help the remaining parent cover the cost of duties such as child care and cleaning that would’ve previously been provided by the parent who has passed away.
For a single parent, life cover insurance is highly recommended, particularly if the children are still quite young. The cover should be sufficient that, if anything happens to the parent, the children are provided for financially until they are old enough to take care of themselves, including education costs.
Usually, as a person grows older, the need for life cover insurance decreases. The need doesn’t necessarily go away, but may decrease significantly. A good reason to continue with a policy, even an amended one, is to ensure money is there to cover such things as funeral expenses, estate taxes, and if your spouse is still living, to cover long-term medical care or nursing home expenses, should they become necessary.
The need for life cover insurance can also decrease as one accumulates wealth, enough wealth to weather catastrophic health or financial events, however you may still wish to have a policy in place to provide you peace of mind against the unexpected.
If you have come this far and feel there is no need for you to have this type of insurance policy, you probably don’t need one. As circumstances change however, there may come a time when taking out such a policy would be in your best interest. If you have doubts about whether or not a life cover insurance policy is best for you, let us know. You won’t get a sales pitch, but the best possible advice, plus helpful free quotes if you need them.