*****LIFE INSURANCE IN SIMPLE TERMS*** By Philip Cullen
Do you need life insurance?
The answer to this question depends, ironically, on whether anyone depends on you. For example, if you have children, then yes, you probably do need life insurance – because they depend on you financially. This is the case even if you don’t work and instead are the unpaid nanny/cleaner/chauffeur/cook/secretary or superhero of the household. If you want to protect your contribution to your family’s finances in the event of your death, you need life insurance.
1) People often make the mistake of only buying enough life insurance to pay off their mortgage. But protection needs often go far beyond that. Take a look Life Insurance: How much do you really need?
2) You need to think about how much it would cost to replace your salary and provide for your family if you were no longer around. You should always have enough cover in place to clear your mortgage in the event of death. But you also need some extra cover to pay for everyday living expenses so your family can maintain their lifestyle.
3) Contact your Financial Advisor to help you work out how much life insurance you really need.
4) You should also think about how long life insurance should be in place. Typically people buy policies which last until they retire or until their youngest child is financially independent.
5) But it’s also important you don’t have too much life insurance. Over-insuring yourself is a waste of money. By taking some time to calculate how much cover you need more accurately, you should avoid this problem.
For this or any more information on financial matters then feel free to get in touch. Southeast Financial Services is regulated by the Central Bank of Ireland