Life Insurance can play a very important part of your financial planning. If you have a family that rely on you providing an income, Life Insurance can help provide security for the family finances. It can help bridge the financial gap between a parent dying and their children being able to work for themselves.
Your income pays the bills that keep a family going. The childcare, new clothes, the new bike, a college education, the list goes on and in the case of a single income family items like childcare can actually increase if the surviving parent has to work. Depending on the age of your children, you can choose a 10 year plan, a 20 year plan etc.
It’s probably more affordable than you think
In our survey 70% of people thought life insurance costs over €35 a month*, which is more than twice the normal starting cost for a term life insurance plan of €15 a month for €100,000 cover over 20 years, for a 35 year old non-smoker. The cost of life insurance depends on your age, health, amount of cover and product type.
Should it be part of your monthly savings budget?
Life Insurance is not a savings plan, but it is worth considering that it would take the average household 80 years or more to save €100,000 for their family by putting €15 on deposit at 4% per year net interest rate, after tax, to help their family financially in the event of death. In that context it can help your peace of mind for your family financial plans.
*Source: Coyne research, January 2013
Some important points regarding Life Insurance:
- You must be aged between 18 and 77.
- The maximum term is 40 years or up to age 80
- The amount you pay is guaranteed to stay the same for the entire period that you are insured for.
- You must keep up your payments to stay on cover.