anthonyburgin
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i have 2 children. should i get life cover?
- anthonyburgin asked 1 year ago in Insurance
- See all 4 answers | report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
The question you are asking is "Do I have a need for life cover?" To get the answer, ask another question: what would happen to my dependents should I die? Would they have enough to live comfortably from other sources and, of course, how old are they now?
If they are still dependent on you financially, and if there are no other sources (such as wealthy parents, or plenty of your savings) then there is probably a need for some kind of life cover.
How much, and what type of cover, depends upon the duration of the need: for example, you might need maintenance funds until the youngest is, say, 21 and, with the current changes to university fees, you might also want then to be able to complete their studies without them having huge debts at the end.
If you are in an occupational pension scheme then that scheme might provide a high level of dependents' payments - so ask your scheme provider what they offer. Finally, do take into account the other major financial risk of your being unable to work due to a critical illness or long-term sickness - in such cases the family problems can be (financially) just a severe as if you had died. Cover is available for both of those potential problems, and, though rather pricey, suitable insurance is a real financial life-saver if you need to make a claim. This is an area where it is worth taking independent advice.
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If they are still dependent on you financially, and if there are no other sources (such as wealthy parents, or plenty of your savings) then there is probably a need for some kind of life cover.
How much, and what type of cover, depends upon the duration of the need: for example, you might need maintenance funds until the youngest is, say, 21 and, with the current changes to university fees, you might also want then to be able to complete their studies without them having huge debts at the end.
If you are in an occupational pension scheme then that scheme might provide a high level of dependents' payments - so ask your scheme provider what they offer. Finally, do take into account the other major financial risk of your being unable to work due to a critical illness or long-term sickness - in such cases the family problems can be (financially) just a severe as if you had died. Cover is available for both of those potential problems, and, though rather pricey, suitable insurance is a real financial life-saver if you need to make a claim. This is an area where it is worth taking independent advice.
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