What is the worst that could happen? If you got sick or if you died, how would you, or your dependants if you have any, cope? The vast majority of self-employed people in the UK have no protection against those events.
Employees are often covered by company schemes. The self-employed have to sort out their own insurance cover. Seventy percent of self-employed people have no life insurance; ninety percent have no critical illness cover. Of course we don’t want to contemplate the worst happening, but it can and does happen every day to self-employed people. Make sure that if the worst happens to you and your family, you are financially prepared.
Don’t assume you are covered either. In some countries, like Ireland, it is a legal requirement to have life insurance when you have a mortgage. In the UK there is no legal requirement. If you have a mortgage and a family don’t make the mistake of not having life insurance cover.
The earlier you take out life insurance, the cheaper it is. For someone middle aged, you can get a reasonable level of cover for around £10 per month.
Some people need to pay much more, while others may not need life insurance at all. How do you know what the right amount of coverage is for you? With so many policies to choose from, learning each of their unique quirks is a challenge.
Before you can decide the right type of life insurance plan for you, you need to think about all of your monthly expenses, as well as your long-term needs. First the mortgage, if you have one. Then what about other costs? Do you want to pay for your child’s university tuition? Do you have ageing parents who need the help of a caregiver?
All of these factors contribute to your life insurance needs. Once you know how much money your loved ones need to get by after you’re gone, you can find a plan that provides the right amount of coverage.
What level of life insurance do you need?
Want to test your life insurance IQ? Take this helpful quiz from Health IQ to find out how much you know about life insurance features and benefits.