Many people think that they do not need any Life Insurance because it is provided as part of their benefits package at work. But, as with most things in life, it is hindsight that shows the pitfalls of this approach and sadly at this point it is too late. So please, please, take a few minutes to think about the following!
Does your company offer enough life cover for your situation? Not all employees have the same financial situations and obligations, so it’s up to you to make sure that you have enough cover and to arrange a personal ‘top up’ if it’s necessary.
In the event of you changing job, even within the same company, your benefits package is likely to alter. If life cover is no longer offered you will then need to take a personal policy, but the older you get the more expensive it is. Plus, if you have experienced any illnesses these could be excluded or will increase your premiums. It is much more cost effective to take a policy whilst you are young and these premiums are set for the life of the policy.
What about your other half?
Many stay at home mums and dads do not have any cover – so what happens if they are no longer around? It doesn’t bear thinking about, but you would need to pay someone to look after your children and the home. Or maybe the only option would be to leave your job. Without any cover in place for your other half there would be no financial help.
The latest statistics indicate that 1 in 3 men and 1 in 4 women will be diagnosed with a critical illness before retirement. Individuals relying on company schemes can find themselves in the situation where sick pay is exhausted and, depending on the illness and the prognosis, can be dismissed on the grounds of capability or pensioned off early. At this point the provided life cover ceases with little chance of obtaining a new affordable policy. Critical illness cover is often cheaper if arranged at the same time as life cover and is vital in order to cope financially in this terrible situation.