This is a question I was asked recently and it is a good one.
In this blog I would like to share my thoughts on this because I am certain other people have thought the same.
The first thing that springs to my mind is that none of us know when 'our time is up' so it is difficult to say for certain whether we would be able to save up enough money to provide either a partner/spouse or child/children with and in time.
Consider how much you would like to leave your family with, it might be a lump sum or it might be a monthly income. How good would it feel to know that if the worst did happen that your family will have financial support and won't be affected too much by the loss of your income? If you are a single parent this becomes even more important because I know that both my husband and I would want to ensure my daughter's legal guardians would have a monthly income atleast until she is no longer financially dependent on them (if something happened to both of us). This would help them to feed her, clothe her and keep a roof over her head aswell as to enjoy taking her out without worrying about money.
How much would you need to save each month and for how long?
Life Insurance starts at just £5 a month and as an example for someone who is 40 years old, they could take out a policy which pays £1000 a month for 25 years for just £10 a month. In comparison, thats £12,000 year which really isn't long enough so saving that and more would be difficult for the average family.
I would love to know your thoughts on this.
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