4. You never appreciate its value until you need to claim on it
Nobody can know what will happen in the future. Hopefully your family will never need to claim on the policy, but having the protection means they won’t have to rely on another source of income or your savings if you die.
When you are thinking of buying life insurance it can be difficult to pay for something that you might not need and that you personally won’t benefit from. However, you have peace of mind knowing that if the worst were to happen, your family would benefit from your decision to protect them financially even if you are no longer around.
5. You would need a lot of savings to get the equivalent lump-sum payout
You could save or invest to build up an emergency fund. However, most people don’t have enough surplus cash or the time to build up enough money. A relatively small monthly premium can give protection and the potential for a payout worth hundreds of thousands of pounds.
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