How life insurance can help protect your family
We spoke to Beagle Street customer Chris Kisby about how having a child motivated him to take out a life insurance policy.
Chris, who is 36 years old, started thinking about taking out life insurance after experiencing a loss in his family and seeing his father go through a serious illness. But what finally pushed him to make the decision was the birth of his child.
Getting life insurance to protect your family
“When I was in my twenties, I never considered getting life insurance, but as time went on, I started to think about it more seriously,” Chris told us.
He explains that his grandfather passing away and his father having heart problems made him more aware that bad things can happen, even to those closest to us.
This awareness grew when he and his partner became parents.
“When our daughter, Violet, was born I felt this overwhelming urge to protect her in any way I could,” Chris said.
“It felt absolutely essential that if the worst was to happen then I could offer some measure of security for my family.”
"Having Violet was a big turning point and a massive wake-up call for me.”
Although he’s glad he has life insurance now, Chris regrets not taking out a policy sooner in life.
He explains that as a young and healthy person, taking out life insurance was not something he thought about or discussed with friends. With rents, mortgages, electricity bills and the price of the average food shop having gone up in recent years, many young adults are struggling to get by, with most not managing to put away any money for the future, let alone take out a life insurance policy.
Recent research by life insurance provider Beagle Street has shown that Chris isn’t alone in putting off getting life insurance. According to their survey, around 10 million* young adults don’t currently have life insurance, with many saying they either simply haven’t thought about it or don’t think they can afford it.
“It was a mistake to do it so late in life, but no one has ever said I should. I've never been sat in the pub and got talking about life insurance, but maybe people should be.”
Ryan Griffin, Beagle Street’s Director of Protection, knows it’s not easy to budget for life insurance, but he believes more people should at least be talking about it so they can make more informed decisions for their families. “There is a whole generation of potentially vulnerable families, so it’s really important to have conversations about this so people can make decisions that are right for them,” he says.
Should you have life insurance?
While the cost of living can push life insurance down your list of priorities, higher prices also mean that your family is less likely to be cope with the financial consequences if something were to happen to you.
Chris made the decision to take out life insurance to protect his family despite having other financial goals in mind. “We’ve got some savings and we’re hoping to save more to buy a house in a couple of years . I want to make sure we’ve got a secure home that belongs to us that we can all live in as a family ,” he says. “We’d like to get married too, but with the costs, it is difficult to do both at the same time.”
Beagle Street’s research found that if a family’s main income earner dies prematurely, the financial impact for that household could be around £195,000 over 10 years. And this number only covers the basic costs of household expenses and mortgage payments.
Even if you’re not a parent yet or aren’t planning on becoming one, it’s still worth reading up on the different types of life insurance and how they work so you can make more informed decisions for your future. Some policies can be helpful for homeowners, while others are designed to help you cover the cost of your own funeral.
What’s the best age to get life insurance?
The earlier you get life insurance, the cheaper it could be, as your premiums are likely to go up as you get older.
Chris took out his policy at 36 and is paying about £30 a month for his life insurance, which also includes critical illness cover for himself and his daughter, Violet.
It may seem too early to start thinking about life insurance in your early twenties, for example, but this could be a great chance to get some of the lowest premiums available. Depending on age, health and lifestyle, life insurance premiums could be less than £10 a month.
Even if you’re not ready to take out a policy now or you simply don’t feel you have a reason to just yet, it’s important to keep the thought in mind and start conversations with those close to you. That way, if you do you buy a house, get married or have a child in the future, you’ll be thanking your past self for thinking ahead.
OneFamily Over 50s Life Cover
Look after your loved ones with our simple, affordable life cover. Our Defaqto 5-star rated life cover offers Funeral Funding, Terminal Illness cover and a range of support services to help support you and your family.
More on life insurance
You may also be interested in:
How much money do you need to retire?
When it comes to saving for retirement, it’s important that you understand your options, make a solid plan and stay on top of your savings.
What are the best places to live and work in the UK?
Discover the UK's best places to live and work based on quality-of-life factors including value for money and work opportunities.
What is a no deposit mortgage and how does it work?
Skipton Building Society has launched a mortgage that doesn’t need a guarantor or a deposit. But is it right for you?
The best ways to save for retirement when you're self-employed
When you’re self-employed and not enrolled in a workplace pension, there are a few ways you can make sure you’re setting yourself up financially for retirement.