Why and how can you insure a life, the layman’s question goes. But, in the event of death, you could saddle your nearest and dearest with huge debts, mortgage and funeral costs, if you don’t get yourself shored up sharpish.
Jeremy Cryer, spokesman from Gocompare.com, said: ‘No one likes to think about their own mortality, which is why life insurance is a difficult product for many of us to consider. But it is important to plan ahead and make sure loved ones are financially protected when we are no longer around to look after them. It can be difficult working out how much cover you need, but as a basic rule of thumb, you should certainly be thinking about buying enough cover to clear any outstanding debts, including your mortgage, and providing a capital sum for your dependants.’
In the current market, Mr Cryer noted that to purchase life insurance can cost as little as £10 a month.
He added: "Even for older customers, a new policy does not necessarily mean sky-high premiums as prices have come down in recent years," he said.
’You should also periodically review your cover to take into account changes in your personal circumstances – if you change jobs, buy a new home, get married or have children for example – these things should trigger a review of your requirements to make sure that you leave your dependants an adequate financial safety net.’