If you’re a parent like me, then chances are you’ll have thought long and hard about your children’s future. A lot of the decisions that we make are based around them – to ensure that we are in a position to look after them until they are grown up and independent.
Have you considered what would happen if you were no longer here? For me as a Single Mama, that’s a big worry. I know that my kiddos would be looked after by their Dad, but financial worries still niggle at me. I have a plan for how I’ll pay for their clothes, food, school, and other necessities. But I realised how important it is to have a plan in case something happens to me. Knowing that they will be provided for eases my worries a little.
There is a lot to consider when you start thinking about taking out Life Insurance. From how much cover you will need, to the best provider, how many term life insurance quotes to look for, set amounts or decreasing amounts, there is a lot to think about.
Here are the four main things that I took into account:
How much cover do you need?
This is dependant on your personal circumstances. A parent of 5 will need more cover than a parent of 1. Think about any debt you’d need to cover – mortgage, loans, credit card debt, etc that would need paying off.
Consider if you have a dependant who would need an Income Replacement. Do you want to cover your income until they are grown up? Or just for a short time?
How much will it cost?
How much it will cost you each month depends on several factors. The amount of cover you require is one, but it is also affected by the type of policy, any add ons, as well as things like you’re age, health, if you smoke, etc.
Who is your beneficiary
This is who will receive the money from your life insurance. Think about who you want to cover with your policy. SO for me, it would be to cover my children – some would go to my adult children and the rest to their Dad to provide for our dependants.
Do you want critical illness cover?
Even if you are in good health now, something could crop up further down the line. Critical Illness Cover can be added on and covers you if you get a life-threatening illness. With dependants, this is well worth considering adding on,
Life Insurance can feel overwhelming – but get some term life insurance quotes, think about the cover you need and how much you can afford to pay each month and look for the best deal you can get.