When we bought our first house we realised how important it was to take our the appropriate insurances. We were incredibly cautious and went, potentially, over the top. However, I'm glad that we did because now we have The Boy we haven't had to adjust any of our policies. In this guest-post, the various insurances that are important for families.
It's no great secret. We all know, no one likes to talk about life insurance. Most people don't even like to think about life insurance. It brings up thoughts of all the bad things that could happen, and really, no one likes to dwell on those.
However, while we may not like to talk about it, life insurance does offer protection. And once you have a family to consider, you will know all about the importance of protecting those around you. Responsibility has a whole new meaning once you have a family of your own, and unfortunately, taking responsibility means planning for the bad things that could happen.
If you are still undecided on the issue of life insurance, here a few things for you to think about.
- Income Protection
Life insurance is not just one standard product. There are actually many different types of insurance that are placed within the life insurance category (click here for more information). One of those types is income protection insurance. Income protection insurance is designed to offer you financial assistance should you be unable to work due to illness or injury.
Offering monthly payments up to 75% of your income, this insurance can help with bills, the mortgage, car payments, school fees or whatever else comes up. You can decide how much you want the payments to be, how soon after illness or injury you want them to start, and how long you want them to carry on for. Bear in mind that payments that start sooner, and last longer will usually result in higher premiums.
- Accident or Injury Protection
Accidental injury protection is a type of life insurance that is designed to offer a lump sum payout should you be involved in an accident. You can usually decide on the level of cover you need, and you'll usually find that more serious accidents result in higher payouts.
The payouts can come in handy if the accident means you cannot work for a while, or if you need to pay for specialist care or treatment. It can also help if you need to make modifications to your house or car because of the accident.
- Adjusting Slowly
When you think about your family having to cope without you, you can't just think of the emotional side, you also need to think of the financial aspect as well. Whether you are a working parent or a stay-at-home mum, the work you do every day is valuable to your family.
Life insurance offers a lump sum payout should you become terminally ill or die. Again, you can choose the level of cover you need. It can help to cover any debts that you have accumulated, such as a mortgage, personal loans, car loans, student loans, credit cards or anything that your family may struggle to pay if you were not here. Taking the financial weight from your family, can help them adjust without have to worry about money.
- Cover Funeral Expenses
It's unfortunate but true, funerals are expensive. It is also true that most funerals are not expected. This means family and friends often have to find large sums of money at short notice – on top of the emotional burden they are already facing. Getting funeral insurance can help to ease the financial stress of a funeral, by offering a quick lump sum payout to help take care of funeral costs.
- Insurance for your Child
While you may not have considered getting life insurance for your children, there are many insurers that offer this service. Some insurers offer a free child cover rider (or add-on feature), which offers cover for your children as part of your own life insurance policy.
This can offer financial assistance if something were to happen to your child. It can help to cover loss of income, funeral expenses, and everyday living costs at a time when the last thing you want to think about is money.