Did you know that when asked, over 87% of parents admitted that they didn’t have life insurance in place should the worst happen?
At MyBump2Baby we are keen to change this and we are really excited to be working with trusted financial advisers throughout the UK on a campaign to raise awareness on this important subject in a bid to protect more parents and families should the worst happen.
Many parents admit that life insurance is a subject they often don’t like to think about as it means thinking about our own mortality. Unfortunately, life insurance is often taken it out when we have witnessed the awful repercussions of what can happen when someone sadly passes away without it, often leaving family unable to pay bills and maintain the lifestyle they had before.
MyBump2Baby will have one trusted financial adviser in each town throughout the UK that growing families can build a lifelong relationship with to ensure that your family is looked after if the worst should happen to you or your loved one.
Today we have our guest Andy Sutcliffe our Preston based financial advisor from Paul Schofield Wealth Management Ltd answering few general questions you may have on life insurance.
What does life insurance do?
Life Insurance is a basic insurance policy that pays out a lump sum of money upon death or diagnosis of a terminal illness (an illness where the individual is not expected to live longer than 12 months).
How soon should we get life insurance in our lives?
As soon as possible is the simple answer. This is because Life Insurance gets more expensive as you get older as we are deemed to be a higher risk as we age.
Do we only need life insurance if we own a property?
Not at all. The proceeds from a Life Insurance policy can be used for any number of things. Yes it can be used to pay off a mortgage but it can also be used to help with the cost of raising children, to leave them a lump sum in later life and can also be used to mitigate Inheritance Tax issues.
My partner has death in service at work? That will cover us wont it?
Death in service is a great benefit from an employer but is really only temporary cover as people quite often change jobs/employers. Employers can also make changes to the benefits on offer at their discretion.
Is life insurance really expensive?
It is actually really inexpensive. It is the cheapest form of personal insurance and can cost as little as £5 per month for over £100,000 for a non-smoker.
I have heard horror stories about life insurance not paying out, how can I check this doesn’t happen to me?
There are only 2 reasons when a policy may not pay out – the first is if you stop paying your premiums, your policy will automatically cancel. The main reason why people have experienced issues in the past is because they haven’t been truthful in the application process. For example, they have said that they are a non-smoker when in fact they are. So if you pay your premiums and answer questions honestly then there are no issues.