Just how much difference can life insurance really make…?
As much as articles detailing the advantages and disadvantages of life insurance cover, the varying policies available and the potential methods of reducing the cost of cover enable individuals to make an informed decision, sometimes the true value of life insurance is best illustrated by the opposing scenarios a normal family would find themselves in if the worst were to happen.
Without life insurance
Jim and his wife Emily are both in their fifties. Jim works as a chartered accountant and has done for the past 15 years. He is the main breadwinner in the family. Emily works part-time at a local nursery as well as holding a number of volunteer positions with local charities. They have a daughter called Annie who is in her final year of Sixth Form College and has aspirations to read medicine at university, leaving certificate results permitting of course.
Although Jim does intend to buy life insurance at some point in the near future, he is very busy with work and family commitments and hasn’t yet found the time. He also lives a reasonably healthy lifestyle, doesn’t smoke and enjoys a regular round of golf.
Completely unexpectedly, Jim tragically suffers a stroke. He is rushed to hospital but there is nothing the doctors can do. Emily and Annie are crushed.
As the months go by and his family attempt to process their loss, Emily starts to notice their finances are drying up and mortgage repayments are becoming increasingly difficult to meet, despite support from Jim’s workplace. Emily comes to the decision that she will need to find better paid work to maintain her and her daughter’s quality of life and support Annie’s future aspirations.
Emily tries to find a job for over a year with no luck. Annie excels in her exams and is accepted to a prestigious university to read medicine. However, with the expense of such a long course and the associated costs of accommodation, Emily is not in a position to support her daughter financially and Annie has to decline the offer of a place at university.
With life insurance
Despite struggling to come to terms with their loss, Emily and Annie are left to attempt to rebuild their lives, safe in the knowledge that their home and lifestyle have been protected financially. Jim had taken out a whole of life insurance policy in his forties, and now the policy has accrued a considerable cash value, along with the substantial payout they received upon his death. With the benefit Emily was able to pay off the mortgage on the family home and can try to come to terms with her loss before thinking about finding a new job.
Once again, Annie excels at her exams and is accepted to read medicine at university. Thanks to the life insurance policy Jim had taken out, the finances are in place to support Annie through her course and continue on her chosen path of becoming a GP.
Tragically, it is often not until it is too late that the true value of life insurance becomes clear. If you’re considering buying life insurance to protect your family’s financial future, contact easylifecover.ie today.