The following are all types of situations where taking life cover may be a consideration:
- If the house is to be lived in by your partner or your children, then you may wish to ensure that any mortgage is repaid in the event of a premature death.
- Money for dependants
- If you have small children then money will help provide for them, perhaps by allowing the surviving partner to stay at home or work part-time for several years.
The good news is that many people already have existing life cover and this quite often is sufficient for their needs. The other good news is that the cost of life cover has fallen dramatically in recent years and you may be able to replace an existing policy with one which is much cheaper than you are currently paying.
At the time of writing there are a number of companies who would provide £100,000 of cover for a male aged 30 next birthday over a 10-year term, non-smoker for less than £10.00* per month and as low as £7.35 per month. This is based on an individual with no health problems and standard underwriting criteria.
If you are in a company pension scheme that does not provide life cover, are self-employed or have dependents, it is essential you have your position assessed.