We all know we should have life insurance in place but often it gets put to one side for another day. However, this type of insurance can be a crucial safety net that enables your loved ones to cope financially when you die.

Here, we explore why and when you should get life insurance to secure your family’s financial security.

Why get life insurance?

Research by Direct Line in 2022 found that only 35% of the adult population in Britain had life insurance cover. To put this into context, this was fewer than half the number who paid for a monthly streaming service (71%).

So why get life insurance? Here are just a few reasons to swap Netflix for financial security:

Replacing your income: Life insurance helps your family to maintain their standard of living.
Funeral expenses: Life insurance can cover funeral costs, easing any financial strain on your family.
Future goals: Life insurance can help to achieve long-term goals, like funding your child’s education.

When to get life insurance

There are various major life events that highlight the importance of having life insurance in place, including:

1. Marriage and starting a family

When you get married or start a family, your income becomes even more critical. Life insurance can act as a financial buffer, helping your spouse or partner cover childcare, everyday living expenses, and mortgage payments.

2. Having dependents

This isn’t just about young children. If you have ageing parents or other dependents who rely on your income, life insurance can help to ensure that they have the financial support they need after you’re gone.

3. Carrying debt

Outstanding debts, like a mortgage or credit card debts, can create a significant burden for your loved ones. Life insurance can help to pay off these debts, providing peace of mind and preventing financial hardship.

Additional factors to consider

Though it’s perfectly understandable to avoid the subject of your own mortality, it’s worth bearing in mind that younger and healthier individuals can generally qualify for lower premiums on life insurance.

Therefore, the sooner you secure cover, the more affordable it’s likely to be in the long run. Having said that, many providers offer policies for over 50s. Although, premiums will be higher as you’ll be considered more at risk.

Remember, life insurance isn’t just about protecting your loved ones today. It can also help them to achieve future goals. For instance, a policy can help fund your child’s education or ensure your partner can comfortably retire.

Types of life insurance

There are two main types of life insurance to consider:

Whole of Life Insurance: This type of life insurance offers lifelong cover and accumulates a cash value over time. Typically more expensive than term life insurance, it can be a valuable tool for wealth accumulation.
Term Life Insurance: This is a more affordable option that provides cover for a specific period (typically 30 years). It’s a good option if you need to cover financial obligations, like raising children or a mortgage.

Invest in your family’s future today

Life insurance is an investment in the future security of your loved ones. By carefully considering your circumstances and goals, you can choose the right type and amount of cover.

“It’s shocking that many of us will gladly pay a monthly subscription fee for a streaming service but will think twice about putting a similar amount towards life insurance,” says Angela Maher, Managing Director at Acumen.

“Life insurance is often something that gets pushed down the priority list. However, it offers vital financial protection for your loved ones should anything happen to you. That peace of mind can be invaluable.

“None of us knows what tomorrow has in store. But there are ways we can mitigate future events and one of those is with life insurance. So my advice is to stop putting it off and start investing in your family’s future today.”

Contact Acumen for life insurance advice

Acumen Financial Planning offers comprehensive personal financial planning services, including life insurance advice. We can guide you through the process, answer your questions, and ensure you get the cover you need.

For more information about Acumen’s personal financial planning services, please contact us today on 0151 520 4353 or email [email protected] to arrange a consultation.

When should you get life insurance?