Life insurance is a serious consideration for everyone as becoming ill and a life ending abruptly is a very real possibility. So many people are struck down with a terminal illness, a medical condition which has to be fought on a daily basis or are even involved in freak accidents that lead to life long conditions or death.

Life insurance works in much the same way as all types of insurance, paying into a premium that will offer some form of protection should the worst happen. Why shouldn’t you receive money for cancer that is causing your life to end or change significantly?

There are, as with anything, advantages and disadvantages to having a life insurance policy and it may not be applicable to every person. It is personal choice as to whether any form of coverage is put in place.

Advantages

• Family and loved ones are supported financially, which is often a major concern after the death of a family member.

• An additional income will enter the house, which will alleviate the financial pressure to allow the family to focus on the grief they are experiencing

• Life insurance can also cover medical expenses, legal costs and funeral expenses should any of these areas be relevant

• Life insurance is not just for the elderly or for those that have on going medical conditions. Anything can happen at any time and it is a good idea to have some sort of support in place

• Policies are usually flexible and can be adapted slightly to meet the requirements of the policyholder. Whether it is in terms of the value of the policy, wider coverage of medical conditions or the length of the policy.

A life insurance policy is not just designed to provide financial support to loved ones once they have lost a family member, but it can also be used to make the last months, weeks or even days of a person’s life as comfortable and precious as possible. We all have things that we want to do and see before we die and for some people the time limit on this is restricted. Many people suffering from an incurable illness create a ‘bucket list’ experiences they want to have before they die.

It is always wise to consider the downsides of taking out a life insurance policy, it is something that requires a lot of thought to make sure the right policy is taken out and that it is even appropriate according to each person.

Disadvantages

• The terms and conditions of a policy can be restrictive and not cover the areas you want it too or result in the policy not being paid out

• It can be difficult and a lengthy process to encourage the life insurance company to pay out

• There is always the possibility that a policy will be paid into that just isn’t needed although this wouldn’t necessarily be considered a bad thing

• Many policyholders tend to outlive the insurance policy and once the term has been completed the policy will pay out if future medical conditions arise.