The Importance Of Life Insurance In The Uk
Although the discussion of life insurance can be a sensitive subject, the financial consequences and unexpected expenditures of death can be devastating. Life insurance however can protect the financial well being of not only yourself but also your loved ones who might not be able to cope with unpaid bills and other debts following your death. Offering peace of mind, financial freedom and security, life insurance really is an invaluable product for those looking to prepare for the unforeseen.
The main reason for taking out life insurance is the financial benefits to loved ones. While nothing can replace to loss of a family member, surviving relatives such as children and partners can go on to experience extreme financial hardship. The loss of income as well as taking on unpaid bills or even steep mortgage repayments can often prove too much to handle for people who are already experiencing personal grief. By investing in an affordable life insurance package, individuals can protect their families from having to struggle on without them and face the unimaginable threat of having the family home repossessed in order to cover bills.
The financial benefits of life insurance also cover the cost of any final expenses. Living can be expensive enough but the cost of a funeral and estate administration means death can be costly as well. Some expenses commonly associated with funerals include a florist’s fee, future care of the burial site and venue hire. You will also need to hire a lawyer to finalise any arrangements in the deceased person’s will and clear up any disputes should any part of the will be contested. Finally, death taxes are another cost to include in the final sum. Inheritance and estate taxes can range from small percentages right up to over half of the final estate, meaning families should be prepared in advance.
The final financial benefit of life insurance is the ability to withdraw funds from your protection plan if need be. While not all life insurance packages permit withdrawals, some do and allow the policy-holder to use the money for any purpose. The policy holder can also take out loans from their life insurance provider, using the policy’s cash value as a repayment guarantee. For many people the ability to dip into their life insurance if need be is a welcome bonus for years of diligent saving. Whether using some savings towards a house, home improvement, university fees or even a holiday, life insurance can provide peace of mind and financial benefits on a number of levels.
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