According to new research, 30 percent of Britons do not have a life insurance policy.
Only four out of ten adults in the UK currently have life policies in place.
The rest have not invested in this benefit, instead spending money on things like mobile phone insurance and high-priced caffeinated beverages.
Over time, these smaller expenses add up to much more than the cost of a life insurance policy, which may cost just 17p per day.
With the myth that life insurance is too expensive laid to rest, we tackle other common life insurance myths.
Unmarried, Childless People Should Consider Life Insurance
Many people believe that they do not need life insurance unless they have a spouse or children. The truth is that even a single individual with no dependents can benefit from having a life insurance policy.
The payout can cover funeral costs so the executor or the administrator of the estate does not need to find a way to pay these. The cash limit of social welfare is £700 but the average cost for a funeral is £2,000. Life insurance can be used to pay for the difference.
Employer Cover May Not Be Sufficient
Workers who receive life insurance cover as an employee benefit may think that independent cover is unnecessary. In many cases, the level of employer-provided cover is not enough to meet the needs of surviving family members upon your death. In addition, leaving the job and failing to convert the policy to an individual plan may leave no life cover in force.
Stay-Home Parents Should Consider Life Insurance
A stay-home parent may assume that life cover is only necessary for the breadwinner in the family. However, parents who stay home make financial contributions to their households by eliminating the need for paid childcare.
To ensure that a surviving parent can pay for childcare and other expenses that may have been eliminated due to one parent staying home, both parties should consider insuring their lives.
Shopping for Life Insurance Is Not Complicated or Time Consuming
Many people avoid shopping for life insurance because they do not understand the terminology or have limited free time to devote to this process. An insurance website or advisor can explain all the terms used in the industry and help an individual find the most suitable type and level of life cover.
By comparing cover online, consumers can find affordable prices from online brokers that rebate some or all of the commissions they are paid by insurance companies.
Going without life insurance is a risky approach that can backfire. Learn more about the different types of cover and features of each. If questions arise during the research stage, write them down and ask an insurance professional for the answers.
Comparison-shop to find the lowest quotes for the desired cover and read the fine print before signing any documents. Then, relax and enjoy life without worrying about how surviving loved ones will cope financially after you die.