5 Reasons Why You Should Get A Life Insurance Cover

The future is unpredictable. Preparing for the future requires various aspects of planning. From retirement to managing unexpected and sometimes recurring medical expenses. Unfortunately managing these types of expenses particularly when we are older and with lower income levels, can be very challenging. Read on to discover how life insurance can help you secure your future with confidence.

1. You can protect your loved ones even after you’re gone.

Protecting your family comes first. In today’s competitive world, in most instances, both spouses are required to do one or more jobs just to keep the home fires burning. 

If you are the primary supporter to bring in the income, your partner and children become your dependents. In the unlikely event of you losing your life, you would want the best for them, with a stable provision for surviving the future even after you’re gone. 

Your investment in life insurance brings one of the greatest benefits with the ability to make payments and carry on with life with the least worry. 

Pending mortgages, debts, childcare, education expenses, and other living costs are some crucial areas that can do with financial backing. This assurance of bringing stability to a grieving and helpless family puts life insurance easily ahead of any financial investment program that you can undoubtedly rely upon.

2. The benefits of a joint insurance policy. 

Have you and your partner made any major financial decisions lately? Like getting a mortgage? Purchasing a business entity or adding another mortgage to the existing one? 

Take away the worry and burden your partner and family might face if you’re not around anymore. Joint life insurance in the UK helps with sudden financial commitments that can be shockingly debilitating following the loss of a spouse or the other joint insurance holder.

A joint insurance policy is usually between 2 parties. It can be spouses or even business partners. In the event of one partner’s death, the joint insurance policy payout is carried out to the surviving policyholder. 

The joint insurance plan may be the right insurance solution to safeguard your spouse, and the family. 

3. Did you know life insurance payouts can be used to pay off inheritance tax?

By investing in a ‘Whole Life’ insurance policy, you can be assured of a total payout in the event of your death, but with one hurdle that may stand in the way of receiving your due financial privileges. 

If your estate, property, or other significant valuables are worth above £325,000 (the current threshold), your family members will be required to pay a 40% inheritance tax (IHT) on the total value before they gain access to any financial benefit.

This is where you can set up Whole Life insurance to pay the IHT. To do this you must write your insurance payout ‘in trust’. This will ensure that your payout will go directly to your beneficiaries as a non-taxable amount instead of becoming part of your total estate.

At BVS Financial Services, our insurance experts will guide you to receive better financial gains on life insurance policies. 

4. Your safety net if you become critically ill

Sickness and ill health are burdens not only on the life you lead but cause a significant drain on the financial front. Facts state that many people face critical illness at some point in their lives. Should such a situation arise, a critical illness cover in a life insurance policy is your true friend in need.

A critical illness cover provides you with a tax-free payout when you can no longer earn an income.

Critical illness payouts are not restricted to covering medical bills, they can be used for whatever you choose such as your household bills, mortgage payments, private healthcare, and payments for your dependents.

5. You can ease the burden of funeral expenses

We may not think of funeral costs until reality hits. In the UK, funeral costs can go up to £3,900 (approximate) or higher. At a time of trying to manage other costs, this is no easy financial burden for those you leave behind especially when it’s an untimely death. 

A life insurance payout is an ideal way to help your loved ones cope with unexpected financial burdens and deal with the essential costs of the funeral.


This short insight as to why you should get life insurance brings to light the benefits you reap in the long run. Life insurance provides a safety net for your spouse/partner and family to continue life not only during an untimely death but also as a way to deal with critical illness and unforeseen expenditures. 

Speak to a professional advisor at BVS Financial services to get more information on life insurance in the UK.

Approved by the Openwork Partnership on 23.05.2024

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