One in five people in the UK act as a carer. Figures show more than seven out of ten of those who look after family, friends or other members of the community do not have any protection policies in place. Furthermore, a fifth do not know who would take over their caring duties if they fell ill themselves and 20% do not know who would provide them with the care they might need. Whichever type of care you provide, whether that’s personal care, helping with shopping or taking someone to appointments, one important type of protection all carers should consider is life insurance.
Getting the right type of cover life insurance typically pays out a lump sum to your dependants if you die during the term of the policy. The beneficiaries of your policy can include children, family members, friends, or anyone else you care for. It provides valuable peace of mind that those who rely on you will be protected financially should the unexpected happen. The money received can be used to pay rent or mortgage costs, bills and other expenses, or to employ another carer. Critical illness cover can often be added to a life insurance policy and pays out a tax-free amount if you are diagnosed with a specified critical illness.
Protection for stay-at-home parents
Carers do not just include those who look after people who are sick, elderly or disabled. If you’re a stay-at-home parent, life insurance can be just as important as it is for working parents. Consider all the tasks you do around the home – looking after the children, cooking, cleaning, school runs, the list is endless. If you were no longer around, your partner might have to take time off work or even stop working altogether to look after the children. Life insurance can provide sufficient funds to cover the costs of childcare, if you aren’t there to provide it.
Reasons for procrastination
Many people put off buying life insurance because they think it’s too expensive, they get cover through their job, or they believe they don’t need a policy. In reality, life insurance policies are often inexpensive – particularly if you take out a policy while you are young and fit – and it is a small price to pay for protecting those you care for. If you have cover as part of your employment package, keep in mind it may not be sufficient, and you’ll likely lose the cover if you change job.
Here to help
Whatever type of carer you are, life insurance is an essential part of your protection toolkit. If you would like to know more about the benefits and costs of protection policies, plus how much cover you need, do get in touch.
