Providing for your family probably takes precedence over anything else. Your parents, spouse and children would ideally make up your family unit. And if you’re the breadwinner, the responsibilities of providing for your dependents becomes your number one priority. Many families in the UK are choosing life insurance as a ‘safety net’ that provides financial assistance in the event of a loss of a provider. If you are a single parent, getting life insurance could be the best thing you do on behalf of your children in the event you are no longer there for them as a provider.
With many insurance options available, the choice is yours to choose one that addresses your needs. But making the right choice may seem a bit overwhelming. This article is about making your choices a bit more streamlined and simplified before choosing a life insurance policy that works for you.
What is the best type of life insurance for a family?
Today’s insurance companies offer great deals. Smarter options that consider the repayment capability of the insured, offer monthly insurance premiums that are easy on the budget, and it doesn’t mean you have to break into your life savings. Speak to an insurance agent or adviser and they will be able to offer you better deals than if you were to obtain a policy on your own.BVS Mortgage and Financial services offers comprehensive and affordable solutions for life insurance schemes.
After all, your family is important and the financial assistance they will receive in the event of you not being around, should be substantial in order to help get through a difficult time period.
Life Insurance helps with the future of your children
Dealing with schooling fees, day to day expenses on travelling, clothing and medical expenses can be quite a heavy expense regime. In the unlikely event of a parent passing away, the other parent will be compelled to take on the responsibility of caring for the children. This drastic and sudden situational change can be devastating especially when there is little or no financial support. Child care and their related expenses can be particularly expensive especially where schooling and education is concerned. The lump sum payout from life insurance can exceptionally ease the burden and help with running the family’s expenses. The lump sum payout will be of pivotal assistance not just in the short term, but also help in the long term as well.
Paying off debts
Most families in the UK opt for loans to help them build up their resources such as housing mortgages, vehicle purchases, schooling for the children and even medical expenses. In the event of a breadwinner passing away, and these types of debts are still pending to be paid off, its not going to be an easy journey for the rest of the family. Taking on outstanding debts and paying them off can be a very distressing task, especially when there is accumulated interest on the loans. Here again, life insurance can be a definite saviour. The lump sum payout can be set off against pending loans and accumulated interest rates to help with the debt repayments. Paying off an entire debt may not be possible, but at least the money you receive can help with paying off some of the interest. The great thing about life insurance payments is that you are able to divert the money received to any task that you think takes priority.
Handling unexpected costs
Unexpected costs can occur at any given time. Probably the most undesired and unexpected cost would be to spend on a funeral. Funeral costs in the UK have been escalating and it is no easy matter dealing with massive expenses within a family at a time of grievance. Many opt to getting a loan to pay off the costs involved. However this may not be the ideal solution, especially since you are now in debt as a borrower. It is at a time like this that a life insurance policy can be a real lifesaver. Providing the much needed financial assistance, the lump sum payout will take care of all the unprepared expenditure that comes about during this time of sorrow and distress.
Conclusion
As described above, we see the definite benefit life insurance provides to a family. In the UK more and more families and individuals are choosing life insurance policies as a way of providing a source of security in the event of the loss of the breadwinner in the family. With over £7.5bn revenue share in 2022 alone, it is evident that life insurance is a popular choice among many. And some may even see it as an investment for the future.
Be it a loan, a mortgage, medical expenses or coping with unforeseen expenses, life insurance lump sum payouts will see you through difficult times.
* Approved by The Openwork Partnership on 16 August 2023
