Life insurance is a little bit like making a will or considering the implications of inheritance tax on your estate in that it forces people to address the prospect of their death.
Nobody, no matter how old, wants to think that they are likely to die in the foreseeable future which is often considered to be the region many people die without having life insurance, leaving their family to pick up the inevitably high costs not just of living without their spouse/father/mother etc but also of the actual funeral which can often run into several thousand pounds. Whilst inheritance tax is something many don’t consider at all, it is vital that even if you are only at the beginning of your retirement, that you take steps to both create a will but also a life insurance policy.
The idea behind having a life insurance plan is to protect your family from the terrible financial burdens they will almost certainly face if you were to die. Unfortunately, regardless of age, the threat of sudden death is always a possibility and f you were to die all of a sudden without having taken out insurance, the burden of paying off a mortgage, the taxes owed to the government from your inheritance, or a grandchild’s college tuition could be placed be on your family’s shoulders. There may be no need for insurance if you have no dependents and are single. If you are married with no dependents, you will still want to consider a life insurance policy so the burden is not left on your spouse if you die.
Whilst the younger you are the less you feel it is necessary, buying when you are younger and are in good health such as not smoking, no health conditions, etc., is much more affordable than you may generally think a life insurance plan is. However, the older you are and/or have bad habits or medical conditions (and therefore the more likely you are to need it), you may find that a life insurance policy will be quite expensive.
There are many variables involved with different life insurance plans, and each plan has different methods of determining its fees. The sort of plan you will require will be dependent significantly on your age, your lifestyle, and how much taxable money you will leave to those in your will. Think about the life expectancy of yourself and your spouse, along with the general state of your health. It’s also important to take into account whether or not your spouse will be able to provide for him or herself after you’re gone.
You should be very careful about the company and plan you choose, ensure you do your research, as each providers policies can be very different. Selecting the best plan for your circumstances is one of the key parts of retirement, as by doing so you will ensure that in the event of a tragedy they make sure your family is safe and secure. There are some companies that specialise in providing health insurance to retired individuals such as Sun Life Direct (www.sunlifedirect.co.uk) but there are many other major provides such as Legal and General (www.legalandgeneral.com) and LV (www.lv.com).