If you die while you still have dependents, being able to claim on a life insurance policy could mean the difference between your loved ones struggling to make ends meet, and their being financially secure.
Despite this, many of us simply don’t have any life insurance cover in place – which is sometimes hard to fathom when you think of how vulnerable we all are to accidents and serious ill-health. But it’s also not hard to see why so many of us put it off. After all, most of us have enough money worries in our everyday lives without also having to think about what will happen in the event of our death.
And who wants to think about death anyway!
However, if you don’t consider what your dependants would do without your income, you could end up leaving them high and dry financially at what is already likely to be a very stressful and emotional time.
Even if you don’t work – you might be a stay-at-home parent, for example – the cover could still prove invaluable, as the chances are childcare and other housekeeping costs would need to be paid for if you were no longer around.
There are several different kinds of life insurance policy to choose from, so it’s important to understand exactly what’s available before buying. Here we explain how the various kinds of plan work, so you can decide which policy might be right for you.