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Life insurance: is it really worth it?

Why bother with life insurance there’s already enough pressure on your monthly budget and it’s a waste of money, right?

Why bother with life insurance

What is term life insurance?

If you’re single, child-free and have plenty of money in your bank, you probably don’t need life insurance. But for everyone else, it could be a very wise move.

Think about it this way…

You may ask yourself if you can afford life insurance. But here’s a more important question: can you afford NOT to have life insurance? If the unexpected happened, how would your loved ones cover the bills, mortgage payments, childcare costs, everyday expenses and funeral costs?

You’d be forgiven for thinking that insurance doesn’t always feel worth the money. After all, when it comes to car insurance, you pay every month and may never make a claim. But life insurance is different. That’s because death is inevitable (whether we like it or not), so if you die while your life insurance policy is in force, there’ll always be a payout.

So who should think about life insurance?

a picture of a pay slip

Anyone who brings in an income that others rely on

Breadwinners

If you’re the main earner in your household, life insurance means your family would have a payout to help replace your income.

Double income households

Whether or not you have children, if you are reliant on two incomes to cover your outgoings and lifestyle, then you might both want to consider life insurance.

Anyone whose hard work would have to be replaced — at a cost

Stay-at-home parents

It doesn’t bear thinking about, but if something happened to you, your partner may have to reduce their hours to look after your children — or pay someone to do all the things you do. on the average day, you’re probably a teacher, nurse, cleaner, chef and driver, so covering these jobs would be expensive. This is where life insurance for mums and dads can really come into its own.

a baby girl is fed by her dad

Full-time carers

If you care for an elderly relative, or for someone with a disability, who’d look after that person if you died? Although no one could ever replace you, a life insurance payout could ensure the right care could be put in place.

a daughter combs her elderly mothers hair

A couple or family in rented accommodation

Renters may assume life insurance isn’t relevant to them. But if the main earner died, the rent would still need to be paid, or your family or partner may have to move. Life insurance could help them to continue living in your family home and without any further upheaval at a very difficult time.

a young couple lie on the bed with their baby

Types of life insurance

Term insurance

With this type of insurance, you decide how long you’d like to be covered for. If you died within this time frame, the policy would pay out. You can also choose how much you’d like to pay each month, or the amount to be paid out when you die. What’s more, you’re covered from day one.

Whole of life insurance

Whole of life insurance tends to be the more expensive option, because it covers you for the rest of your life, paying out to your beneficiaries whenever you die. Whole of life insurance with no medical is more affordable, but the cash payout is much smaller.

What else could I do?

You might be considering these alternatives to life insurance.

Saving

You could put money aside in savings. The problem here is that you don’t know when you’re going to die (unfortunately, this is the one thing beyond our control) and your savings may not have had the time to accumulate sufficiently.

This means there might not be enough to cover expenses like the mortgage, bills and funeral costs.

Selling assets

It’s possible that your loved ones could sell the house to help cover costs. But that would mean having to leave the family home at an already upsetting time. It can also take several months to sell a house and your family may need the money more quickly.

a little girl sits on her fathers knee whilst she eats lunch with her grandparents

Life insurance really can help financially at a difficult time

So, put simply, unless you’re single, carefree and have no dependents, or you’ve recently won the lottery, it’s worth thinking about taking out life insurance.

It can give you peace of mind knowing your loved ones will have some financial security if the worst happened; and it doesn’t have to break the bank. Premiums are available for under £10 a month and the sooner you start the better the deal you can get. And remember, even if you can’t afford to cover everything you’d like to, a payout of any size will be a great help to the people who mean the most to you.

SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, life insurance, 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). Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is entered on the Financial Services Register (registration no. 110418). As part of SunLife’s commitment to quality service and security, telephone calls may be recorded.

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 the funeral services are arranged and provided by Dignity Funerals Limited. Dignity Funerals Limited is a company registered in England and Wales No. 00041598. VAT registered No. 486 6081 14. 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands, B73 6AP. Telephone No. 0121 354 1557. Fax No. 0121 355 808. Part of Dignity plc. A British Company. Dignity are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority but are registered providers with the Funeral Planning Authority.

Who provides the Funeral Plans?

The funeral services are arranged by a funeral director selected by Golden Charter Ltd. Golden Charter Ltd are not required to be authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority in relation to funeral plans but are registered providers with the Funeral Planning Authority.

If you choose to pay for your funeral in one go, with a single payment, you will have a contract with Golden Charter. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.

If you choose to pay for your funeral with a life insurance policy, the policy will be provided by AXA Wealth Ltd, trading as SunLife. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.

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 Family Life Insurance?

SunLife Family Life Insurance is provided by Scottish Friendly Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Details can be found on the Financial Services register (registration number 110002). Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ. 

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.