Whether you’re renting or you have a mortgage, it’s vital to have cover in place to protect you and your family if the worst happens. This article explains how life insurance and critical illness cover could help you whether you’re a tenant or a homeowner– and why it’s so important.

Why do I need life insurance?

It’s not pleasant to think about bad things happening, but sadly it’s a fact of life that they do. So it’s essential to think about how your family would pay the mortgage or the rent, along with the rest of life’s essentials if you were to pass away.
This is where life insurance plays its vital role. Life insurance policies pay out a tax-free lump sum should you die in the duration of your policy*. And that means that your family won’t be left trying to work out how to make ends meet if you pass away – which could be the case if you didn’t have protection in place.

Who is life insurance for?

It’s a common misconception that you only need life insurance if you have a mortgage – but that’s what many renters believe. In fact, research by Sainsbury’s Bank found just 26% of tenants are likely to have life insurance or critical illness cover in place compared to 41% of owner occupiers.
But if you’re living in one of the UK’s 4.44 million privately rented households and you have anyone relying on you financially, whether that’s a partner or children as well, you should also consider putting protection in place in order to provide them with financial security.

What’s Family income benefit?

You may have heard of family income benefit and be wondering what it is. It is a type of life insurance but instead of paying out a lump sum, it pays out a fixed monthly or quarterly income from when the policy holder’s dies to the policy expiring. With family income benefit, premiums tend to be lower as the insurer is less likely to need to pay a large sum and they do, they don’t need to pay it in one go.

Critical illness cover: What is it?

Being diagnosed with a serious illness is another devastating life event that has the potential to cause huge financial hardship to you and your family. Because if you’re off work for a long period and that means you can’t earn money, then how will you pay the rent or mortgage?

This is where critical illness cover can be a lifeline because it’s designed to offer financial protection if you’re diagnosed with certain illnesses during the term. And in the event of a successful claim you’ll get a tax-free lump sum upon diagnosis. And you’ll be free to spend it on whatever you wish, whether that’s paying the bills or on medical-related costs.
You may also want to look into income protection. This can provide you with a regular income should you be unable to work due to illness or injury. And it can ensure you receive an income until you’re ready to return to work again.

How we can help you?

It might seem like there’s a lot to think about but the key is to know your options – which is where we can help. We have two protection only advisers who are ready to answer all your questions about life insurance and critical illness cover and help you decide which protection is right for you. So call us on 01625 573124, click here to arrange a call back or email us [email protected]