Life Insurance Awareness Month

Never has the world been so keenly aware of the fragility of life than in the last few years. While the term pandemic was familiar to most of us before 2020, most of us had only encountered it on TV or in movies. A doomsday plot device the heroes had to prevent or solve, with many misadventures along the way. Few of us had considered what it would be like to live the reality. In the post-COVID world, health is no longer taken for granted quite so much, and the worst-case scenario is no longer an abstract concept confined to the realms of fiction. So, as we head into another cold and flu season, it is supremely apt then that September marks the annual occurrence of Life Insurance Awareness Month.

Didn’t know that was a thing? You’re not alone. But raising awareness of the power life insurance has to positively impact situations that are – in all other respects – dire is vital. So, if you’ve ever wondered about life insurance – what it is, how it works, and if you should have it – it’s the perfect time to find out. In honour of Life Insurance Awareness Month, here’s all you need to know…

Life insurance is a lot like car insurance or house insurance. You take out a policy that offers a monetary pay-out, up to the value of your car or household items, in the event something happens. You pay a premium towards that policy monthly. Then, should anything damage or destroy your car or home, you receive enough money to repair or replace it.

Life insurance differs in that the item insured is the policyholder’s life. The pay-out is not received by them but by their loved ones in the event of their death. Finally, and crucially, the intention is not to offer something that replaces what has been lost but to give the policyholder peace of mind their family will not struggle financially in their absence.

The cost of living is constantly rising, and many families are already struggling to make ends meet. While we don’t like to think about the unthinkable happening, the truth is that in the event of a death in the family, the consequences can be far more than the grief and bereavement of loved ones. A death also represents a loss of income in a household, which can mean anything from struggling to cover the costs of a funeral to losing the family home because there’s not enough to pay the mortgage.

It may seem like a horrible thing to think about, but the reality is that we all hope to live to a ripe old age and pass away peacefully, leaving a fortune to our loved ones, but anything can happen. In the event of an accident or illness, life insurance ensures your family are cared for in your absence. Alternatively, it ensures you are cared for in the absence of a loved one.

The main benefit of life insurance is a monetary pay-out in the event of the policyholder’s death. This might be tied to a mortgage and result in the family home being fully paid for, so it’s never a worry. However, it can also be a cash pay-out that loved ones are free to use as they need. You can have multiple policies so that both outcomes are covered. And of course, you can also specify how the funds will be used and who receives the money.

Your life insurance policy can cover the cost of your funeral – which quickly adds up to thousands of pounds. In addition, it can act as a buffer, so the loss of your income doesn’t affect the quality of life enjoyed by those left behind.

More than that, a life insurance policy can encourage you to lead healthier and happier lives. Many policies have incentives to improve your health, such as a reduced premium if you quit smoking.

Many have taken out a policy and gone on to lose weight, get fit, quit bad habits, and so much more, simply because there is that monthly reminder that life is both precious and fleeting.

Here at Fish Insurance, we have partnered with Watts Mortgage & Wealth Management who offer life insurance and critical illness cover, designed to give you reassurance that your family and those you care about would be looked after financially, should something happen. Click here for more information.

It’s effortless to get involved in Life Insurance Awareness Month – share this post, and you’re already actively participating. The whole point is to raise awareness, spread information, and get people to start thinking and talking about life insurance. So get thinking, hit share, and don’t be afraid to ask your friends and family if they have life insurance or if you should get it…