If you are young, it is likely that you have not thought about taking out life insurance yet. After all, it probably is not high on your priority list if you are in your twenties. There is a misconception when it comes to life insurance that it is only for the older generation but taking out insurance at a younger age could have its benefits.
Many people choose to take out life insurance once they have children, as a way to protect your family from the worst-case scenario. If your policy pays out, it can provide much needed financial support, although it is important to remember that the policy will only pay out if you gave correct information at the time of applying.
There are different types of protection policies that can offer different benefits, and some can be beneficial whether you have children or not.
Even if you do not have children, you might have a partner or other family members that rely on you. Unfortunately, you never know what is around the corner, and it can be helpful to be prepared. If you have people who depend on you financially, then you should consider different types of cover such as life insurance, critical illness or income protection.
If you were to pass away or become terminally ill within your policy term and had a life insurance policy in place, the pay-out could be instrumental in helping your spouse or family members. The money could be used for household bills and living expenses, including your mortgage payments.
The average total debt per household in the UK is £60,213. Life insurance can protect your family from suffering a financial impact that may come with losing you.
Some types of protection policies can protect you even without children or other family members to consider. Critical illness cover is a type of protection policy that will cover you for certain, predetermined illnesses.
Critical illness insurance may offer a pay-out if you encounter a condition on the predetermined list, which may help you meet your financial commitments. Critical illnesses can include defined cancers, heart attack or strokes.
A different type of protection that may be beneficial for you, even without children, is income protection. If you take a prolonged period off work due to illness or accident, income protection cover may be able to provide a regular monthly payment until you either return to work or the policy ends.
Income protection insurance may be able to provide up to 65% of your income, depending on the insurance provider.
With this in mind, there are types of protection policies that could be beneficial for your personal circumstances, regardless of your family situation. It is important to consider taking out the most suitable protection policy for you even before you have children, as you may then have the right policy already in place when the time comes.
Please note this article is not to be taken as financial advice. The policy examples listed in this article have no cash-in value, and cover will cease at the end of the term or until your premiums are not paid.