The worst mistake of all, of course, is to not have any life insurance. If this is you, it’s something that you need to rectify as soon as possible. The worst possible scenario is being alone in Tenerife dealing with the death of a loved one with financial problems and no life insurance.
When to take out life insurance? There is no exact age when you might need life insurance . Typically, you might start thinking about life cover when:
- You take out a mortgage. Could your partner pay the mortgage if you were to pass away? Life insurance could ease this worry, and options like decreasing life insurance could be attractive if you want your payout to roughly decrease in line with your repayment mortgage.
- You have children. Given the cost of childcare, after-school clubs and feeding a family, parents are arguably the main contenders for who should get life insurance.
- You’re in a long-term relationship. It can be tricky to decide when to take out life insurance, but one trigger for getting life insurance could be once you have a partner who depends on you financially, which may be less likely in the early days of a relationship.
- Before you retire. You really should take a life insurance policy long before this. The older you get, the more expensive it is and frequently life cover is refused due to medical issues as we age.
- Moving abroad. Essential. Make sure your loved ones don’t have a financial crisis should you pass before them.
- You may also want to consider joint life insurance.