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10 reasons why you may need life insurance

Life insurance and critical illness cover are designed to help protect your loved ones’ financial future should the worst happen to you. But how do you decide when the time is right to take it out and which type is the best life cover for you?

As we go through life, our circumstances change and things happen that we may never have predicted – some good, some not so good. Here are 10 of the most common life moments that can make life cover a priority.

1. When you start a family

With children comes the moment we realise that others are wholly dependent on us. If one parent dies, the financial burden may fall entirely on the surviving parent. Life cover can alleviate this burden and help the loved ones left behind maintain the lifestyle they enjoy now. With term insurance, you can choose how long you want to cover your family for and how much will be paid out.

Why life cover? Baby sleeping on parent's chest

2. When you want the best for the kids

We all want the best for our children and want them do well in life. Taking out life cover can ensure they’ll have money and resources available to them even if you were no longer there to provide for them; maybe to go on to further education or get a foot on the housing ladder.

3. When you rely on two incomes

When we share our life with someone special it’s natural to worry about their future if we were no longer by their side. Many of us depend on two incomes or on one parent staying at home to look after the children every day. Life insurance can help the surviving partner cope financially, by helping to maintain the family’s lifestyle, pay for childcare, funeral costs and any outstanding debts.

4. When you buy a house

For most of us a new house comes with a mortgage. Could your family keep up with mortgage repayments and maintenance costs without you? Many mortgage providers require you to take out life insurance so that if you died during the mortgage term your policy would pay it off.

Why life cover? Young woman decorating her home

5. When you lose someone dear

Losing someone dear is not only upsetting it can also be a bit of a wake up call – a reminder of just how precious life is. Putting off life insurance may mean your loved ones struggling to cope financially if the worst happened to you unexpectedly. Taking out a life insurance policy sooner rather than later can be reassuring because you know a financial cushion will be there if needed.

6. When illness is a worry

According to Cancer Research UK 1 in 2 people in the UK will develop some form of cancer in their lifetime. It’s easy to assume serious illness won’t affect us, but when someone close to us falls ill we see the impact it can have. Critical illness insurance pays out if you’re diagnosed with one of a series of serious medical conditions, to help you cope financially. Critical illness cover can be included with life cover or bought on its own.

7. When your parents need you

As parents get older, it’s often our turn to support them physically and financially, particularly if they get by on a small pension or have little saved. In this situation, how would they cope if they outlived us? Naming parents as the beneficiaries of a policy means if you did die a level of financial support would still be there for them.

8. When there’s a family history of illness

Having a pre-existing medical condition or a family history of illness doesn’t necessarily mean life insurance is not an option. What it’s likely to mean is the cost is higher and cover for any existing illnesses may not be available. With critical illness insurance it’s important to check exactly what illnesses are and are not covered.

Why Life cover? Mature man in hammock using a tablet

9. When getting divorced

Divorce doesn’t necessarily mean the end to the financial commitments held as a married couple, such as the mortgage, car and credit card bills. This is why many divorced couples take out a policy on the person responsible for paying child support in case they die. Term life insurance provides cover for a specific period of time such as until the children become independent.

10. When becoming a grandparent

Becoming a grandparent is a very special moment and grandchildren have a special place in our hearts. Many people take out over 50 life insurance, in order to leave a cash gift as a legacy to their family after they’re gone.

SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, equity release, pet insurance, car insurance, home insurance, ISAs and Will writing services.

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife?

Phoenix Life Limited trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 1016269). 

SunLife Limited distributes financial products and services and is a company limited by shares, registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

You can contact us by post at SunLife, PO Box 1395, Peterborough, PE2 2TR or by phone on 0800 008 6060.

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan, Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

Who provides the Funeral Plans?

Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

The life insurance policy that pays for your funeral will be provided by Phoenix Life Limited, trading as SunLife.

Who provides My Smarter (ISA)?

My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.

Who provides the Will writing services?

Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).

The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.