Real-life stories show why having the right protection insurance can make all the difference when life takes an unexpected turn.
One of the questions we’re asked most often is:
“Why is insurance important?”
It’s understandable. When you’re healthy, working, and everything is going well, insurance can feel like something you’ll never actually need. However, life can change unexpectedly. At Oportfolio Mortgages, we believe arranging appropriate protection is just as important as arranging the right mortgage. Whether it’s life insurance, critical illness cover, or income protection, having the right policies in place can provide valuable financial security if the unexpected happens.
The following anonymised real-life stories highlight why insurance is important and demonstrate how delaying or cancelling protection can have lasting financial consequences.
Quick Answer
Insurance is important because it helps protect you and your family from the financial impact of unexpected events such as death, serious illness, or being unable to work.
While no one expects these situations to happen, having the right protection in place can help cover mortgage payments, replace lost income, and reduce financial stress during an already difficult time.
Who This Guide Is For
This guide may help if you:
- Have recently bought your first home
- Have taken out a mortgage
- Have children or dependants
- Are wondering whether life insurance is worth it
- Want to protect your family’s finances
- Are reviewing your existing protection policies
Why Is Insurance Important?
Most people insure things like:
- Their home
- Their car
- Their mobile phone
Yet many people don’t insure the one thing that pays for all of them: their income. Protection insurance isn’t about expecting the worst. It’s about making sure that if life takes an unexpected turn, you and your loved ones have financial support when you need it most.
Real Life Story 1 – Waiting Too Long Increased The Cost
- A couple purchased their first home and took out a substantial mortgage.
- As part of the mortgage process, their adviser recommended taking out critical illness cover alongside life insurance to protect them against the financial impact of a serious illness.
- Critical illness cover provides a tax-free lump sum if you’re diagnosed with one of a range of specified medical conditions, such as certain cancers, strokes, or Parkinson’s disease.
- Despite receiving a quotation with what the adviser believed was an affordable monthly premium, the couple decided not to proceed because they felt the cover was too expensive.
- The adviser even suggested reducing the level of cover to make the premiums more affordable, but they still chose not to proceed.
- One of the clients explained that they planned to lose weight in the future and believed they would be able to obtain cheaper insurance later.
- Instead, their circumstances changed in ways they couldn’t have predicted.
- Two years later, one of the client’s parents was diagnosed with cancer. This prompted the couple to reconsider their decision and arrange protection.
- However, when they returned for a new quotation, the monthly premiums had increased.
The reasons were straightforward:
- A close family history of cancer meant insurers viewed them as presenting a higher level of risk.
- They had not lost the weight they originally planned to.
- They were two years older, and insurance premiums generally increase with age.
The result was that they ended up paying more for the same protection they had previously declined.
The Lesson
Sometimes the cost of waiting can be greater than the cost of the insurance itself.
None of us know what our health or family circumstances will look like in a few years’ time, which is why arranging protection while you’re young and healthy can often provide the best value.
Real Life Story 2 – Cancelling Cover Had Devastating Consequences
- Our second story is a sad reminder that serious illness can affect anyone, regardless of age.
- This client had previously arranged comprehensive protection, including critical illness cover and income protection, after taking advice from their financial adviser.
- The monthly premiums had been carefully calculated to fit comfortably within their budget.
- However, a few years later, they contacted their adviser to cancel the policies.
- Their reasoning was understandable.
- They wanted to reduce their monthly outgoings and, being in their thirties, felt they were unlikely to ever need the cover.
- Sadly, not long afterwards, the client suffered a sudden brain aneurysm that completely changed their life.
- The illness left them unable to work and requiring significant ongoing care.
- Because the client was unable to communicate, a family member contacted the adviser to ask what protection policies were in place and whether a claim could be made.
- Unfortunately, the adviser had to explain that all of the policies had been cancelled the previous year.
- Had the cover remained in place, it could have provided valuable financial support during one of the most difficult periods of the client’s life.
The Lesson
Nobody expects to suffer a life-changing illness. But unexpected events don’t only happen to older people. They can affect anyone, at any stage of life.
Common Reasons People Delay Insurance
Many people put off arranging protection because they believe:
- They’re too young to need it
- They’ll arrange it later
- Insurance is too expensive
- Nothing serious will happen to them
- Their employer provides enough protection
Unfortunately, real-life events don’t always happen when it’s convenient. Arranging protection early often provides greater choice and lower premiums. The reality is that the best time to arrange protection is usually before your circumstances change, not afterwards.
The Importance Of Protection
Hopefully, you’ll never need to claim on your insurance. In many ways, that’s the best possible outcome. But if something unexpected does happen, having appropriate protection in place can make an incredibly difficult situation more manageable.
It can help:
- Repay a mortgage
- Replace lost income
- Cover household bills
- Protect your family’s financial future
- Reduce stress at an already challenging time
- Provide financial breathing space while you focus on recovery
Oportfolio Insight
Across London and the South East, we’ve spoken to many clients who initially questioned whether protection insurance was really necessary. It’s only when real-life events affect friends, family members, or colleagues that many people begin to appreciate its value.
Insurance isn’t about expecting something bad to happen. It’s about making sensible financial plans so that if life takes an unexpected turn, you and your family have one less thing to worry about.
Key Takeaways
- Insurance protects your family’s financial security.
- Premiums are often lower when you’re younger and healthier.
- Delaying protection can increase costs or reduce your options.
- Serious illness can affect people of any age.
- Life insurance, critical illness cover, and income protection all play different but equally important roles.
Need Advice On Protection Insurance?
If you’re wondering why insurance is important or you’re unsure which type of protection is right for you, we’re here to help.
At Oportfolio Mortgages, we provide tailored advice on life insurance, critical illness cover, and income protection to help protect you, your home, and your loved ones. Whether you’re buying your first home, remortgaging, starting a family, or simply reviewing your finances, we can help you find protection that suits your needs and budget. Get in touch today for a no-obligation conversation with one of our advisers.
