Life insurance is only for older people, right? Surely it’s not worth getting coverage until you know you’re reaching retirement age and want to invest in a safety net for your family should the worst happen?
It’s something we hear a lot when we talk to people about life insurance. It appears a common train of thought and it’s easy to see why it exists; younger people may be willing to take their chances and don’t feel the need to consider insurance until it becomes a priority.
It simply isn’t true that life insurance is for and should be exclusive to older markets, though. Anything can happen in life, no matter your age, background and status, and taking out a policy can be a fantastic financial safety net for people’s loved ones should the worst happen.
A pay out on a policy can help to pay the mortgage, medical bills, funeral costs and much more besides, and be a real source of help during times of trouble, no matter how old you are. With the Association of British Insurers saying that £4.7 billion was paid to customers for life insurance, critical illness or income protection claims over 2016, it’s worth considering the protection the right policy can offer.
Here are three of the most common misconceptions we regularly come across regarding life insurance and why they may be wrong:
1: You’re too young for a policy
As we’ve already mentioned, you’re never too young (or old) to take out an insurance policy. Especially if you have dependents, are the main earner in the household, a policy can represent excellent financial back-up. They can be more affordable the younger you are too.
2: Your partner earns all the money
If you’re a stay-at-home parent and your partner earns the majority of the family’s income, some feel it doesn’t make sense to take out a policy. The costs associated with funerals and other factors though can be a huge burden, especially alongside the emotional burdens of a loss. The way to go may be a joint insurance policy that covers both you and your partner.
3: You think you’re already protected
We believe it’s essential to work with an experienced consultancy when you wish to take out a life policy to help you find a suitable, affordable package for your needs and to determine your level of cover. A lot of people think they’re already covered through mortgage insurance and critical illness cover policies. That may not be the case, and working with a specialist can help you discover your current level of cover and align you with the most suitable policy for your needs.
If you’re looking for a life insurance policy, Oportfolio’s specialist consultants will work with you to take your wants, needs and financial situation into account to help you find the most suitable package possible.
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