Less than a third of adults, with children in the UK, have life insurance. It is by no means compulsory to take out a policy, though you will be required to do so if you take out a mortgage, but if you have dependents you should consider the peace of mind that taking out a policy will bring. Here are five factors that need thinking about.
It’s easy to assume that because your children are in state education that there is little or no cost involved, but it’s a staggering fact that according to recent estimates it will cost you in the region of £200,000 to raise a child from birth to the age of twenty-one and a lot more of that than you think will go on education costs. Initially of course it’s nursery education, which is likely to involve fees and transport costs. Then, when children begin school there will be in addition, uniform and equipment costs and as the child gets older and becomes involved in trips and extra-curricular activities, these costs will increase. Ultimately there are university costs, which are impossible to predict, but which are likely to be hefty.