Death Proof Your Finances

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From Editor’s Desk: This is a guest article by Chris Spann

Do you have kids?

If the answer to this is yes, then you’ll know exactly how much that as a parent, you’d do anything to keep them safe and not wanting. Whatever the circumstances, you want your kids to do as well as they possibly can whether you’re there or not.

So, that begs the question: If the worst were to happen to you (Or whoever the main earner is in your household), what would your family do? A serious illness (Or worse) can really take its toll on a family, both from a personal point of view and a financial one as well. After all, if the household’s main breadwinner is suddenly no longer bringing money in, what can the family do to get by?

The answer, of course, is life assurance, term assurance, life assurance or whatever else you want to call it (Although technically life insurance and term assurance are separate products). Whilst nobody ever wants to think in this way, your life does have a value, especially to your creditors (mortgages, credit cards etc), and keeping them happy in the event of your passing is extremely important – especially your mortgage!

If simply protecting your home is your only priority, then life insurance needn’t cost the earth – a simple policy that will decrease in value roughly in keeping with the capital remaining on your mortgage is probably the cheapest option available, and this policy will also likely get cheaper over time as the sum assured decreases. These policies are likely the most cost effective way to protect your home, and mean that until the house is 100% yours, your passing would not compromise your family’s home. Of course, if you would like to leave your family a lump sum if the event of your death (Perhaps to cover university fees, other debts or whatever other concerns you may have) that is of course achievable, but you will likely end up paying more for this policy because as you get older you pose more of a risk to your insurer.

Of course, the next question is this: How do I make my life insurance?

There are actually two answers to that question. Both will make your insurance cheaper, and even better you can combine the two for added effect!

The first thing you can do is simple: Get healthy. Quitting smoking will reduce your premiums very quickly, as will losing a little weight – especially if your BMI is over 30. 30 is also the threshold for obesity, so by losing weight you’ll be doing yourself a favour for a number of reasons!

The other thing you can do is shop smart. Don’t just take the first deal you see because it looks good – try using a comparison site like or a broker in order to find your cover. This option is actually doubly recommended as quite often these services often provide you with someone to speak to who can help you through the application process – it can be a long and frustrating experience, so having a friendly voice at the other end of a phone could really help!

Nobody wants to think about life insurance – it’s a morbid thing to think about. However, the fact remains that you may need to protect yourself for the worst, and as such it’s probably not a bad idea to go about it in the best (and cheapest!) possible way!

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