What is Life Assurance?
Life Assurance is financial protection for your family and loved ones against expenses or debts that occur after your death, a serious illness or injury. Every month/year you pay a premium and in turn if you pass away or are injured, your family would receive a lump sum payment. When you take out a mortgage you are obliged to take out Life Assurance, so the remainder of the mortgage will be paid off. However, you can also take out Life Assurance so your family can have their current life style, e.g. going on an annual holiday, supporting your kids future higher education opportunities and shopping in your regular shops.
1. I don’t have a mortgage, should I still take out Life Assurance?
When you apply for a Mortgage you must take out Life Assurance. However, this should not be the only reason to take out Life Assurance. If you have a family, it will provide them with a financial safety net to pay off any remaining debt or expenses, e.g. loans, house repairs, school expenses. It will also provide them with a comfortable standard of living which they are currently used to. With Life Assurance, you don’t have to insure the bare minimum, you can make sure your family are living to the standards they are used to. It provides you with a peace of mind to know your nearest and dearest are financially secure.
2. I don’t have any kids, should I be concerned about Life Assurance?
Although you might not have any kids, Life Assurance will still protect your partner/parents from any debt which you may have occurred over your life time. Debts such as car loans, student loans, holiday loans etc. The people who are your next of kin will be the ones who will have to deal with any financial debts you may still have. This is why Life Assurance is important, so it can pay off any remaining expenses. It is also important if you provide any income to your parents so they can continue being financially comfortable.
3. I’m under 35, why should I take out Life Assurance?
At a younger age, Life Assurance can be a lot cheaper overall than if you took it out after the age of 40/50. If you take it out at a younger age than in the future if you get married or have kids that premium will not change. The only thing that will change is you knowing your family are financially healthy and secure if any tragedy happened. It can also protect yourself financially if you were to have any serious illness or injury. For a 30 year-old male who is a non-smoker, you can get life cover of €250,000 for approximately €15.15 per month. You could spend that in a week on coffees!