Life Insurance policies?
as usual, there is no sponsored content - these words are my own - and this is a simplistic explanation of how I see Life Insurance.
We are all born and we are all going to die.
The inbetween bits are the most frustrating and the most enjoyable, and the part we call life.
Life Insurance is available to purchase, but will not affect at all how our lives actually pan out.
In fact, we don't get to see any of the money that pays out - if it pays out at all.
Confused?
Let me explain.
Most Life Insurance is what's called "term", which means it is for a length of time.
It could be for 50 years, for example.
As long as you pass away in that time, it pays out the sum of money to your nearest or dearest.
If you have lived longer than that 'term', the policy is nil and void.
But: you lived a long time, so 'Yay'!
And either way - term or lifelong insurance - you're not going to see the cash as it pays out after you have shuffled off this mortal coil.
So.
Should you invest in Life Insurance?
Well, there are two points to look at:
Firstly, you are definitely going to pass away at some point in the future because we all are. And you will need something to happen to your remains.
Most folk wish a funeral, some a simple cremation, others just want their corpses dealt with quickly and efficiently. All these activities cost money. Lots of it.
Everywhere from £900 to several thousand pounds (at 2018 prices).
So someone is going to have to pay for this to take place.
Secondly, you possibly want to leave some money to relatives or friends.
Unless you are very wealthy (if so, what are you doing reading my blog?!) this might just be something you add to the list of things you had wanted to do...
Life Insurance covers both these points.
You can make a small monthly payment (I'm in my late 40s and my payment is very manageable) to an insurance firm for an amount of money that will cover both the cost of a basic funeral and giving your loved ones a little cash in their pockets.
In addition, you could purchase a pre-paid funeral plan from a Funeral director (like the Coop) so that any insurance money remains a lump sum.
Regular readers will know that we live a thrifty existence here.
But this is one area that I see as essential: it's going to happen, and it's going to need paying for.
Life Insurance is a worthwhile monthly expenditure to avoid a future debt.
Do you have Life Insurance?
Do you think this is a worthwhile expense for folks today?
We are all born and we are all going to die.
The inbetween bits are the most frustrating and the most enjoyable, and the part we call life.
Life Insurance is available to purchase, but will not affect at all how our lives actually pan out.
In fact, we don't get to see any of the money that pays out - if it pays out at all.
Confused?
Let me explain.
Most Life Insurance is what's called "term", which means it is for a length of time.
It could be for 50 years, for example.
As long as you pass away in that time, it pays out the sum of money to your nearest or dearest.
If you have lived longer than that 'term', the policy is nil and void.
But: you lived a long time, so 'Yay'!
And either way - term or lifelong insurance - you're not going to see the cash as it pays out after you have shuffled off this mortal coil.
So.
Should you invest in Life Insurance?
Well, there are two points to look at:
Firstly, you are definitely going to pass away at some point in the future because we all are. And you will need something to happen to your remains.
Most folk wish a funeral, some a simple cremation, others just want their corpses dealt with quickly and efficiently. All these activities cost money. Lots of it.
Everywhere from £900 to several thousand pounds (at 2018 prices).
So someone is going to have to pay for this to take place.
Secondly, you possibly want to leave some money to relatives or friends.
Unless you are very wealthy (if so, what are you doing reading my blog?!) this might just be something you add to the list of things you had wanted to do...
Life Insurance covers both these points.
You can make a small monthly payment (I'm in my late 40s and my payment is very manageable) to an insurance firm for an amount of money that will cover both the cost of a basic funeral and giving your loved ones a little cash in their pockets.
In addition, you could purchase a pre-paid funeral plan from a Funeral director (like the Coop) so that any insurance money remains a lump sum.
Regular readers will know that we live a thrifty existence here.
But this is one area that I see as essential: it's going to happen, and it's going to need paying for.
Life Insurance is a worthwhile monthly expenditure to avoid a future debt.
Do you have Life Insurance?
Do you think this is a worthwhile expense for folks today?
Life insurance is different to the poor value 'over 50' plans advertised by the likes of Michael Parkinson. The latter are a rip off, prey of people's fears of their family having to pay for a funeral, and cost a small fortune if you live a long life. They have been vilified bu Money Saving Expert's Martin Lewis and many financial experts. Avoid at all costs! Life insurance covers things like paying off the mortgage if you die and leave (for example) your spouse and children in a house they could not otherwise afford. Pre-paid funeral plans (lodged with certified funeral directors) purchased via Golden Charter, Co-op, Dignity are very good value and differ again from the above two products. We paid less than £2,000 for our funeral plans in 2011 via Golden Charter. What we have covered in our funeral plans would now cost over £3.5k. They can be paid for in a lump sum or in instalments.
ReplyDeleteI do not have life insurance, I give my family what I can when they need it. Many years ago I willed my body to medical research and once they have finished slicing and dicing they will dispose of whatever is left. There is always a shortage of cadavers for research and it felt the right thing for me. The only downside is that I had to opt out of the organ donor scheme. But who knows I might be instrumental in a cure for something very nasty.
ReplyDeleteWe don't have life insurance but we prepaid for our cremations so our family doesn't have to worry about it.
ReplyDeleteI have never had life insurance because I am single and no one depends on me for anything. I don't have a prepaid funeral plan, there will be enough in the bank to cover the cost. I have instructed in my will that I want the cheapest funeral they can get, no frills, dig a hole in the back garden if you like, I won't know about it. We all come in with nothing, we all go out with nothing, we can't take it with us. I prefer to help out family members now while I am still alive.
ReplyDelete