When it comes to life insurance, there are a variety of misconceptions about when and why you need it. So, let’s take a look at times you might think you don’t need life insurance, but actually it’s totally worth considering.
Why you think you don’t need life insurance
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You are young
It is a common misconception that life insurance is only for people of an older generation. However, the most popular demographic for life insurance in the UK is actually those aged 35 to 54.
In comparison, only 2% of people under 24 have a life insurance policy. Though getting life insurance under the age of 21 can be difficult, grabbing your policy young can actually have a number of benefits.
The most influential of which might be that you can often get a cheaper policy whilst you are young, as you are less at risk of needing a payout.
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You are healthy
In fact, most insurers will need you to undergo a health check before taking out life insurance. Some illnesses will not be covered, especially if they are pre-existing conditions.
Instead, taking out life insurance whilst you are healthy makes you more likely to get approved, and will, again, potentially offer lower premiums.
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You think it won’t benefit you whilst you are alive
You might think that life insurance only pays out once you have passed. In this sense, it might be perceived that it only benefits the people you have left behind, and thus does not seem like a tempting investment personally.
However, some employee life insurance policies not only pay out a lump sum to your dependents after your death, but they also reward you during your life too. The idea is to reward healthy habits and behaviours, improving your wellbeing.
By doing regular exercise, eating healthy, and so on, you might earn cash rewards, gift cards, and vouchers, and also benefit from discounts on meal plans and gym memberships as an incentive to commit to the programme.
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Your spouse earns a good salary
If your spouse earns a decent amount of money, you may feel like there is no need to take out life insurance, as they wouldn’t need the payout in order to be financially secure if you were to die.
However, there are many other factors to consider. For example, have you got a mortgage together? Are there any shared credit cards or debts? Have you got any children that need to be supported once they are older?
If you answered yes to any of the above, life insurance will help your spouse to pay for these expenses in conjunction with their own salary.
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You are single and have no children
Though this may sound morbid, even if you have no dependents as such, someone will have to pay for your funeral, and pay off your mortgage or any debts you have.
Thus, a life insurance policy can help to cover expenses and costs that need to be sorted after you have died, without putting financial stresses on those who are left behind.
As you can see, there are no excuses for not getting life insurance – it’s essential for financial security no matter where you are in life and can also support you along the way.
