Many people feel that investing in a life insurance plan is a big burden. This info is especially for them. Statistics suggest that one in four breadwinners in the UK does not have a life insurance. This is quite an alarming ratio as the dependents would be left to live a financially unstable life should the breadwinner die. That means almost one fourth of British families live under the risk of facing an economic crisis. As a solution, the support from NHS or other government schemes could be taken. However, all government support may not be enough for the education of kids, rentals, medication for critical illness or other basic facilities. Below are some of the myths that people usually associate with buying a life insurance cover:
Contents insurance is good enough!
This is another fatal misconception. While we ensure that our house, cars, laptops and other accessories are insured, we often take for granted the most important part of the family i.e. its members. The death of a family member, especially the breadwinner can result in a sudden financial crux. Loved ones may need to manage for money required for the daily needs. Thus, even if you have contents insurance it is always important and urgent to buy yourself a life insurance plan. You never know the future but can certainly prepare yourself for the worse.
Life insurance is for the man!
A survey shows that about 50% of British men and 40% women are insured for a life cover. Again, both the percentages are apparently low. Moreover, it’s generally believed that women who do not earn in most cases do not naturally feel the pressing need of an insurance plan. It was observed by Cancer Research that more than 130 women die every day due to breast cancer. With such an increasing number of women health issues, women should not keep themselves without a life insurance plan. Again 1 in 3 people is likely to suffer from critical illness. This way, life insurance plan is vital for both men and women. Ignoring a life insurance plan could prove fatal as your family would be left with many financial burdens.
Mortgage cover would do!
Mortgage is a popular thing in the UK. People with mortgage covers should also go for a life insurance so that in case of their accidental death, the insurer would pay the outstanding mortgage amount. The facts do not point to any such awareness in the UK. According to surveys, about 45% of people have a mortgage with no related life cover. All these staticsshow clearly the importance of life insurance. Either it is an existing mortgage, a critical illness or death, a life insurance helps the beneficiaries to manage the financial situation easily and comfortably. The lump sum amount received from insurer helps in paying for the funeral cost, mortgage, debts or other family expenses.
Reasons for a life insurance plan to:
Support you in case of a critical illness
Support the family in the event of the breadwinner’s death
Manage funeral and other expenses
Pay educational expenses of the kids
Support the family financially in the future
Who needs life insurance plan?
A retiree with a dependent partner
Parents with a new born child
Anybody who has dependents
If you have a mortgage
Newly married couples
Every family that plans for the future