Life Insurance coverage

Consider the following:

1)    The first reason to have life insurance is to handle your final expenses when you die. Grieving family members will have the burden of arranging and paying for burial or cremation. An average casket and cemetery plot can cost between six to ten thousand dollars.

2)    The primary reason to have life insurance is to settle your debt after your death. Your debts don’t just go away when you die. Like the final funeral expenses, family members will become legally liable for your debt, and could possibly be taken to court to settle it.

3)    Your “Last Will” will not be honored until your debts are paid. Your heirlooms or final wishes may come down to dollars and cents, instead of the loving memories you had planned to pass on.

4)    Life insurance becomes more expensive the longer you wait to get started. Premiums for people in their twenties are a lot less than those in their fifties because the mortality rate goes up as you age, and the life insurance companies are more likely to need to pay your policy out without having your long-term premiums being paid in. For this same reason, once you have health ailments, it becomes more difficult to insure your life at a reduced rate.

5)    Lastly, a “Whole Life” policy can be purchased at an early age and provides a “nest egg” for your future. This type of policy allows you to borrow against it, in case of an emergency while you are still living. This type of policy is especially useful for you and your family if there is a long illness leading up to your death. The policy can be used to pay medical bills, etc., instead of waiting it out until after your “Last Will”can be settled in court. You should take financial responsibility for yourself and provide what you can to your family after you are gone. In the end, a life insurance policy can be a life saver to your family that is left behind.

If you are looking into taking both life and critical illness insurance then taking them together with the same provider could save you a great deal of money. You would of course need to check the terms offered by the provider as the illnesses which are protected under critical illness protection could vary. Usually the majority of critical illness policies would include protection for cancer, stroke, and heart attack and bypass surgery. They would generally protect between 27 and 38 different illnesses which might also include HIV, kidney failure, meningitis, Alzheimer’s and major organ transplant plus more. Some providers could also include protection automatically for any children of the policy holder under the age of 18 and again this would need checking with the provider.

Life and critical illness insurance can bring enormous peace of mind for the policy holder and their family. While you cannot predict what the future may bring you can at least protect against falling victim to a critical illness which could have a devastating effect on the whole of the family. If you were to suffer from an illness it would be life changing and of course you would not be able to earn a living to keep the family in the way they are accustomed too. With the insurance provided from the policy you would have an income to be able to fall back onto which would at least take away the financial stress. If you should lose your life then life insurance would be there for your family to fall back onto after your death. This would allow them financial security during a time when they needed it the most and would help them some time to recover from your death and get back on your feet again. With any insurance you would need to check the limitations and exclusions in the cover as these could differ between providers.

David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best insurance deal on their home insurance, car and life insurance.