IT'S a well-known fact that making preparations for life-changing events, such as marriage, starting a family and buying a home, can be some of the most stressful times of our lives.
Many of the worries relate to the costs involved and, as the following figures show, the amounts needed to fund these events can be considerable:
• The average cost of a UK wedding is £16,569*
• New parents face average costs of £9,152 during the first twelve months of a child's life**
• The typical deposit needed for a first-time buyer to purchase a home is £31,500***
Any anxieties can quickly disappear if everything goes to plan (although some of the debts may take much longer to clear). The future can look wonderful for a recently married couple, proud new parents and those who move into their first home. Of course, things don't always work out as intended and plans may have to be changed. This is especially true when someone dies.
Death is not a subject most people want to think about, especially when they're relatively young and healthy. The sudden death of a loved one is difficult to imagine and will trigger its own stresses for those left behind. There may be great sadness, even bitterness that someone dear has been taken away. Further stress may result from trying to make ends meet without the income and support of the deceased? This is a scenario where life cover can play a vitally important role.
Life cover pays out a lump sum amount on death or the diagnosis of a terminal illness. Life cover can be taken out by an individual or jointly by a couple. It is often very reasonably priced and it's easy to check out the likely cost online. The cover can also be purchased online or over the phone.
Life cover is probably off the radar for most people who are preparing for their wedding, the birth of a child or about to move home. But these are occasions when they're taking on new responsibilities and financial commitments and the need for life cover is probably greater than ever. When someone dies, those left behind have to continue paying for food, utilities and all the other many everyday costs of living. These can total several thousand pounds a year and, on top of that, there may be debts that need to be cleared. In addition, how would they pay for one-off costs such as essential repairs to the home or a replacement car? Life cover can buy peace of mind with the promise to pay out a cash sum that can be a real financial lifeline for dependants.
The death of a close family member will be a life-changing event for those who are left behind to pick up the pieces. Making plans to ensure that loved ones don't suffer financially is potentially one of the most important things that a person can do.
* Yorkshire and Clydesdale Banks research, April 2011
** LV = Press release February 2011
*** BBC News - First-time house buyers 'face big bill'
