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Is life insurance worth it?

When you’re part of a loving family, the last thing you want to consider is a time when one of you is no longer around. But although it’s hard, thinking about the unthinkable for a short time is one of the kindest things you can do for your future selves.

When someone is grieving, all sorts of things are going through their mind. It’s going to be an incredibly difficult time, but you’d hope the one thing they won’t have to worry about is money.

Money can never bring someone back. But it can give a loved one the precious breathing space they need to come to terms with the reality of what’s happened.

Our research reveals that 74% of people say their family’s health and wellbeing is the most important thing to them in the future.1 And yet, 71% do not have a policy in place that would provide for their family if something happened to them.2

Talk it out

Starting the conversation with your family about how they’d manage for money if you or your partner passed away is a big step. It’s certainly not an easy one, but it’s really important to be open and practical so you all know what the long-term plan is.

You don’t have to decide on a plan right this minute. However, think what comfort it would be to know there’ll be a financial security blanket in place for the future. Being able to reassure your partner, children or elderly parents that you can make a difficult time just that little bit easier, would be a huge weight off.

Consider your options

Is life insurance for you? If you have dependants or a partner who relies on your income, or if you pay the mortgage on the house where you family lives, a life insurance policy could be a great way to provide for them if you were to die.

Of the several different types of policy to choose from, perhaps the 2 most common are:

  • Whole of life which pays out when you die

  • Term which pays out if you die within a certain time period

You’ll also want to consider different cover options, such as:

  • Level term where the payout stays at the same amount

  • Decreasing term where the amount reduces over time

Explore more: HSBC Life Cover

Chat to an expert

When you’re at the stage of wanting to know more, an internet search can help to build up your knowledge. But it’s easy to get befuddled when browsing the endless options available online. Perhaps a better idea is talk to a protection adviser about getting a personal recommendation.

Our financial advisers are experts at getting right to the core of what you need and can recommend a policy and level of cover that’s right for you and your family. There is no cost to you for our advice and the service is available by phone so you don’t even have to leave the house.

Other things to think about

The more practical discussions you can have with your family now, the better prepared they’ll be later. So while you’re on the subject, why not discuss and share some important pieces of information at the same time?

Make sure your family knows:

  • Where they can find a copy of the will

  • Contact details for executors and the solicitor

  • Details of any other financial plans, policies and covers

  • How to get hold of other important paperwork, such as property deeds, bank statements and pension statements

  • If there are any debts that need to be settled, such as loans and credit cards

Feeling tongue-tied?

If you’re still wondering how to get the conversation started, don’t worry. The key is not to overthink it and get yourself worked up. Remember all the positive reasons why you’re having the discussion.

Do a little bit of homework so you know what you’re talking about. And wait for the right moment when you’re both relaxed and have time to talk. You can do it – and when you’ve done it, you’ll be so glad you did.