What is life insurance and why should you have it?

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Life insurance is one of those things that you hear everyone talking about, you know that you need to have it, but you just don’t really know what it is, right? What purpose does it serve? And why exactly is it so important that you’re covered? In order to make things a little clearer for you to understand, we’ve pulled together a quick breakdown of everything you need to know about life insurance and getting yourself and your loved ones protected.


So, what is life insurance?

Life insurance put simply, is a way to help and protect your closest family and loved ones, should you die while you hold the policy. It’s a way of knowing that, should something happen to you suddenly, or you get a serious illness and pass away, your family aren’t going to be left with nothing. It’s a way of protecting them financially and making sure they’re supported through such a difficult time and, to the best of their ability, they are able to carry on living the lifestyle that they’re used to.

When choosing a life insurance policy, you decide just how much cover you’re going to need and how long you’re going to need it for. It’s then up to you to decide whether you make monthly payments or an annual lump sum for the duration of the policy. If you were to then pass away and a valid claim is made on your life insurance, your family could use a service such as those offered by Beyond to settle your estate and access the pay out from your insurance to cover the costs of things such as mortgage repayments, household bills, childcare costs or even funeral costs.


Is critical illness cover the same as life insurance?

Critical illness cover is similar to life insurance, but not quite the same. It’s extra cover that you can add to a life insurance policy which will allow you access to a chosen amount of money, should you be diagnosed with a particular serious illness during the course of holding your policy. It’s a way to support you financially if you’re off work on long-term sick leave and it can also help with medical bills.


At what point can you get life insurance?

There’s no set age when you should have life insurance by, but as soon as you feel you have something worth protecting, such as you’re living with your partner and have bills and a mortgage to pay, you should seriously consider it. Just bear in mind that life insurance gets more expensive the older you are when you take the policy out, so you’ll find the best deals when you’re young, fit and healthy.


Why should you have life insurance?

Not everybody chooses to take out life insurance; believing that they’ll live until a ripe old age and will just be paying insurance money for nothing. But who can see into the future and know what fate has in store for them? There’s no telling what could happen this week or this month, let a lone a few years down the line. So, if you have people dependent on you and your income or childcare, or you have debts and a mortgage that’ll still need to be paid once you’ve died (and they will), then life insurance is certainly a good idea.

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