If I die…
- I have no life insurance.
- I have mortgage protection life insurance so at least the house will be paid off .
- I have life insurance but I haven’t a clue how much it will pay out.
- I’m sorted. My life insurance will cover my mortgage and pay the bills and all other expenses for long enough for my family to get back on their feet
If you answered 1, 2 or 3 you have a ‘protection gap.’ Upshot is that your family won’t be able to manage on the payout they receive from your life insurance company if you die.
“If for example the breadwinner in a family was to die, being able to pay off the mortgage would be a big help. But, while that would take a significant burden off the family, it wouldn’t leave any money to pay the ongoing household bills, provide an income or mean the everyday things could carry on.” [Dean Lamble, managing director at Sunlife]
It isn’t always easy to get the balance right between ensuring you have enough cover whilst keeping the monthly premiums affordable. For example, does your employer have a death benefit scheme, paying a multiple of your salary? If you are self-employed, the approach will be different from those of you who are employed….either way, there are some key mistakes to avoid!
For your FREE download of “3 Huge Mistakes to Avoid When buying Life Insurance,” go to www.yournextpolicy.co.uk.