It’s the start of a new year and a bright future is on the horizon. You may be blessed with good health; a thriving career; great relationships – life is good. So why would you need life insurance?  



‘Life insurance’ can instantly bring thoughts of mortality to mind; something many of us aren’t keen to consider. However, life insurance isn’t just for the older generation – in fact, the sooner you invest in it, the better. Life insurance offers reassurance and protection to your loved ones; safeguarding the good decisions you’ve made throughout your life and, making sure that – should anything happen – your next of kin aren’t burdened with any unexpected financial stress.  



But it’s not only about preventing your loved ones from being responsible for posthumous expenses (like your mortgage or funeral costs). Life insurance makes it possible to leave a legacy of sorts: a lump sum that can be used to help care for any dependents, for instance. It will also provide you with valuable peace of mind, whatever the future may hold.  



Why Would I Need Life Insurance? Four Key Reasons  


You can choose to take out life insurance at any time in your life – and at almost any age. However, there are several key life events or considerations that can act as a prompt to taking out this kind of cover:  


1. Buying a home.  


Purchasing a new property – whether it’s your first or ‘forever’ home – is a cause for celebration: a real milestone! However, if you have a mortgage and something happens to you before that loan is paid back, repayment responsibility will fall to one of your loved ones and may result in your new home having to be sold. Choosing the right cover for your situation will remove this burden and allow your nearest and dearest to manage things with relative ease.   



Cherry Godfrey’s experienced team will help find the best policy for you. For example, if your mortgage is interest only, ‘level-term cover’ (where pay outs are fixed, regardless of how far you’re into the policy) might be best. If you have a reducing debt – like a repayment mortgage – decreasing-cover life insurance could be a viable option.   

Whichever policy you choose, being proactive will bring you – and your family – confidence and comfort.  



2. Marriage and children  


Many people choose to take out life insurance when they become engaged, which makes a great deal of sense: ensuring that you’re both protected, were something to happen to the other, is an apt way to honour the commitment you’re making to your future spouse. Joint policies tend to be cheaper than single policies, but often these only pay out once, after which time the surviving spouse would need to take out a single policy (and these get more expensive as you grow older). It’s worth fully exploring the pros and cons of single and joint policies to find the best option for you.  

Similarly, if you’re planning on (or expecting) children, it makes sense to have provisions in place for childcare. There are policies that run until your child reaches ‘maturity’, and often you can set the limit here (the policy could expire when the child reaches 18 years of age, or the age limit could be higher).  



4. Funeral planning  


For most of us, the idea of thinking about our own funeral is challenging. But the unfortunate truth is that funerals are not inexpensive – in fact, costs are rising each year. With that in mind, it’s important to put some provisions in place to ensure your family are able to organise a suitable remembrance without a financial struggle.  

For this particular expense, Whole of Life Cover might be a good option. The pay out tends to be smaller, however unlike Term Assurance it is guaranteed to pay out regardless of how long you live. The lump sum doesn’t necessarily need to be used for your funeral, of course. However, if it’s important to you that the money be used in a certain way, you may wish to have your life insurance written in trust, which means that the money will be spent in accordance with your wishes.