WOMEN WORKERS FOREGOING LIFE INSURANCE PROTECTION
According to recent research*, it’s not just the gender pay gap that women workers have to contend with. Many are also likely to be putting themselves at risk! When it comes to having adequate life insurance, insurance cover in place.
New findings from a major insurer show that more than half of women in the UK have no life insurance or critical illness cover. The survey also found that 28% of respondents were worried about what would happen to their family if they were too ill to work or worse, if they died.
When asked why, women responded that cost was a barrier to them taking out insurance. This is particularly sad, as premiums are often a lot less than people imagine. The monthly cost of putting a policy in place can often equate to as little as the price of, say, a trip to the cinema for two with snacks!
*Aegon, More than 13 million women in the UK lack a financial safety net, 2016
LIFE INSURANCE MYTHS DISPELLED
Each year thousands of families in the UK benefit from the pay outs made by life companies; sadly, many more suffer financial hardship as the result of the death of a breadwinner.
Most of us have heard about the benefits of life insurance. Many people still put off taking out a policy. Believing in some of the myths that have long been perpetuated. The fact is, loved ones left behind if you were to die would need taking care of financially. Life insurance is one of the best ways of preparing for the worst-case scenario.
Myth: Premiums are too expensive
Many people are surprised to learn that it is less expensive than they’d first thought. Plus, it’s a small price to pay when you consider that having no insurance would cost your family considerably more. This could result in them struggling financially.
Myth: If you’re not working, you don’t need cover
If you’re a stay-at-home parent, just think of all the tasks you do on behalf of your family.
Everything from cleaning and cooking, to childcare and beyond. All of these might have to be paid for if you weren’t there to provide it.
Myth: It will mean having a medical
No, you are unlikely to need a medical. Most insurers only require one if you’ve had major health problems in the past.
Plus, it’s also a myth that you’ll need to release your medical files or undergo yearly checkups to keep your policy in place.
Myth: if I were to die, the policy could take ages to pay out
No, it shouldn’t, especially if the policy is written in trust.
If you thought you had to be incredibly rich to need to set up a trust, you’ll be pleased to know where only life insurance is involved this is a simple formality now widely used to help pass money on swiftly and efficiently to loved ones on death.
This form of trust is a legal arrangement that helps ensure that the payout from your life policy goes to whoever you choose to receive it. Meaning you can control where your money goes. In addition, the payment wouldn’t have to wait until probate, the legal document required to administer your estate, has been granted.
Obtaining probate can be a lengthy and time-consuming process. However, if a policy is written in trust, the proceeds can be paid out once a death.
MAKE 2017 THE YEAR YOU PROTECT
FAMILY AND THINGS THAT MATTER MOST
Taking out the right protection policies for your needs may not be at the top of your list of New Year resolutions. Arguably it should be. These policies do what it says on the tin’; they offer protection against a wide variety of unexpected events that every year happen to thousands of families up and down the country.
Having a policy in place means that if disaster strikes. There is a financial pay out available to help make things better. There’s a wide variety of policies available in the marketplace and on your own it can be difficult to choose the right type of cover for you and your family.
That’s why it can really help to discuss with us which policy, or policies, would be best for your needs. We’re on hand to help you choose the most appropriate cover based on our research into what’s on offer from a range of insurers. We can save you hours of internet searching and calls to insurance companies for quotes. As advisers, we make the process far less stressful and time-consuming.
Where to begin
Life cover is one of the most important financial products around. One of the best ways of leaving loved ones provided for financially. Life insurance doesn’t just pay a lump sum on death, or the diagnosis of a critical illness. It can help provide an income for families hit by an accident, sickness or unemployment. Help parents pass their wealth on to future generations and can have a major role to play in inheritance tax planning too.
It can often be a good idea to take out a policy that covers more than one risk, for instance life insurance combined with critical illness cover.
Cover for your home is vital too. You may need to have buildings insurance as a condition of your mortgage, and you should certainly think about contents insurance for all your possessions. That way if you’re a victim of burglary, fire or flood then you’ll have a sum of money to replace lost or damaged items. With the average three-bedroom home estimated to have £55,000* of contents, it really makes sense to be properly insured.
*Association of British Insurers, 2017