Life insurance is important for a number of reasons. In general, it allows you to plan for your life through retirement while you are still alive and to protect your family and/or loved ones once you have passed. With life insurance, you are able to make plans to take care of your family after you have passed, assuring that they will still receive income, and you're able to give your survivors possibilities for their future.
Most people already with life insurance still do not have sufficient funds. The average life insurance need is about £225,000; but the average amount of insurance owned is around £61,000, which leaves a deficit of more than £147,000. According to a LIMRA International study, 45 per cent of widows and 37 per cent of widowers say their spouse was not adequately insured. One to two years after the death, 50 percent of the widows and only 33 percent of the widowers were just getting by financially.
As well, on average, widows (who receive life insurance proceeds) receive about three times the household income from all life insurance proceeds, while widowers receive one year of household income. In addition, private life insurance is important because many rely on group insurance, which leaves them vulnerable if they lose their job.
With your life insurance, you may be able to set aside enough money to pay off your final expenses so that you don?t burden your loved ones with these costs. According to a trade commission finding, a traditional funeral, including a casket and vault, costs about £3,000, although flowers, obituary notices, acknowledgment cards and limousines can add thousands of pounds to the bottom line.
Your life insurance may provide an income so that your family may continue in its standard of living, by covering everyday expenses. And if you own a home, your life insurance may also pay off the mortgage so that your family may remain there, instead of having to sell it. According to the aforementioned LIMRA study of households affected by premature death, income declines by 15 percent during the year of death. Assets also decline to cover medical, burial, and other expenses.
Finding the best life insurance quote is extremely important, considering what is at stake for you and your family. Take the time to fill out our short life insurance form. We will then be able to put you in touch with an adviser from the SimplyFinance network who will talk you through your options and help you find the best policy for you and your family.