When do I need cover?

Do I need Life Assurance?

Life Assurance is an often too easily overlooked subject maybe because it’s something people don’t like thinking about.

Often we find it's not that people don’t want Life Assurance, it's just they haven’t thought about the consequences of not having it. Our aim is to put people in an educated position before they make a decision.

Speak to one of our advisers, who will talk you through your options - Request a call.  Here are some of the key events through all our lives that can determine what cover we need & when we need it.

I’m having a baby

The birth of a child brings with it the consideration that you will be financially responsible for that child at least until the age of 18, if not longer should you / they consider further education.

You need to make sure that you have enough cover to allow your child to maintain a standard of living you deem adequate should something happen to you and /or your partner.

This might not just mean repaying debts like a mortgage (taking out a Life Assurance policy) so a burden is removed, but also thinking about replacing a lost salary or the likelihood that in the early stages of a child’s life, you may need to consider replacing childcare costs (Family Income Benefit).

I’m starting a new Job / Occupation

Starting a new job is an important time to review your Life Assurance as you may well find that the benefits you would have received in your previous employment no longer apply. It’s important to review what you will now receive in the event of death & illness and plug any gaps in cover.

If you are becoming Self-Employed then you will no longer receive any benefits from an employer. It’s especially important for you to consider how you would cope if you were unable to work through accident & sickness – an Income Protection (or Income Replacement) policy is a good policy to consider.

I’m taking out a mortgage / changing the terms of my mortgage

A mortgage is likely to be the biggest financial commitment you will ever have and therefore making sure the mortgage is repaid should the unforeseen occur is vitally important.

You should consider protecting your mortgage in the event of your death (Life Assurance) but also in the event of illness (Critical Illness Insurance).

If you are remortgaging or purchasing then it is very likely that you will be changing the amount you owe and the term in which you have the debt over - it is therefore a very good time to review your protection needs and top up your cover to reflect these changes.

I’m getting married

If you are getting married, engaged or simply just taking out a mortgage with your partner, you need to think how your partner would cope should your income no longer be available due to death or illness.

If you have a mortgage would they be able to continue to meet the payments, if you have children would they be able to work and look after the children?

More than anything you should consider repaying any debts (Life Assurance), but also replacing your partners lost income. Income in the event of death can be provider by Family Income Benefit - income in the event of illness can be provided by an Income Replacement (Income Protection) policy.

I’m getting divorced

Divorce doesn’t mean you lose dependency on your former wife / husband. If you have children together then School & University Fees or indeed Maintenance payments may still need to be covered should the unforeseen occur.

In the event of death you may prefer to have an income to cover these expenses in which case a Family Income Benefit would be suitable. Alternatively you may prefer to have a lump sum (Life Assurance).