Why do people take out life insurance?

It gives your family a safety net

When you have a family, your income supports others as well as yourself. Your family might be left struggling in the event of your untimely death. It may seem a bit morbid to think about income replacement but if you buy life insurance you can give your surviving partner and children a death benefit to pay living costs, and outstanding debts or to give them some financial security.

You could decide to take out a single life insurance policy or a joint policy that covers you and your partner. A joint life policy is cheaper than two single policies but most will only pay out once.

There are different types of life insurance policies. A level-term policy pays out a lump sum that can be used to pay bills. Alternatively, you could leave some money for your children, to help pay for university or their first home. Decreasing term life insurance pays out less as the years pass so is the ideal choice to pay off your mortgage, which will also reduce over time.

You’re buying your first home

When you're buying your first home most lenders will insist that you have life insurance in place. If you choose a decreasing life insurance plan you can tailor your coverage so you're covered for your full mortgage term. The amount that the policy pays drops each year so if you keep up with the monthly payments on a repayment mortgage your payout should cover the full amount.

This gives your family financial peace of mind as they won't have to worry about the mortgage repayments when you're gone.

Alternatively, if you have an interest-only mortgage you may be better off with level term or whole life insurance as the capital sum won't reduce. 

You have debts

If you’ve taken out any loans, to buy a car, for example, you might be able to make repayments but your family will need to pay off any outstanding debt if you die before it's repaid. Your life insurance can allow your loved ones to settle your debt without needing to take the money out of your estate.

Some loans, for example, student loans, can be cancelled, so it's important to check the terms and conditions when trying to figure out how much life insurance you might need.

Why speak to us?

We started Globacare because we saw that people needed high-quality insurance advice, and the call centres clients were familiar with weren't able to provide it. From the outset, we’ve focused on quality over quantity when it comes to our team, employing only the best brokers in the market and always putting clients first. It’s worked, as we now have a fantastic team, all of which genuinely love to help people. Click here if you’d like to meet the team.

Why do customers choose us?

We work hard to provide the highest levels of customer satisfaction, and it's one of the main reasons that many of our clients have been with us for years. Here’s why:

• Free advice from experienced product experts
• We're independent and work with all the leading insurers
• A single point of contact, both before you buy and after
• Help with claims if you ever need it
• Honest and trustworthy advice from a friendly team
• 5-star rating from over 400 client reviews

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Paying death-related expenses

Death and taxes are both inevitable and can be expensive.

If you have assets which exceed the tax-free allowance for inheritance tax, your beneficiaries will need to pay tax on their inheritance when you’re gone. If you’d rather not leave them with a hefty bill, your life insurance can have it covered. We'd recommend that you speak with independent financial advisers for estate planning advice.

Perhaps inheritance tax isn't a concern, but you would like to leave some money behind to help cover your funeral costs. The British Seniors Funeral Report 2021 found that the average UK funeral cost £5,631. Most people would struggle to find that kind of money but still want to give their loved ones a proper send-off. Your life insurance policy can give you enough coverage to ensure those final expenses are paid.

How we can help

If you need life insurance but aren't sure where to start our life insurance brokers can help. We'll provide you with an outline of the products on the market and a comparison quote to give you the right cover and financial protection for your circumstances.