How to use Life Insurance to build financial resilience

life insurance provides a cash fund for childrens education. children smiiling in classroom

It’s better to be looking at than for it


Building financial resilience with a life insurance policy should be the foundation stone of personal and business financial planning. Brokers will often refer to the ‘hierarchy of needs’ and it’s generally accepted that this hierarchy is:

Life Insurance

This is a no-brainer. Life Insurance is a great product. It will replace earned income, clear debts, provide funds for your children’s future, pay off inheritance tax liabilities, or simply pay for a decent funeral including soup and sandwiches.

It’s affordable

Once you determine your optimal level of cover then an experienced Financial Broker will tailor a life insurance policy to your needs and budget. Even if you can’t afford to fully address all of your identified needs then your Broker will ensure that you get as much bang for your buck as possible. This may be achieved through price matching and Broker discounts to deliver the best possible policy at an affordable premium.

So what exactly is a Life Insurance policy?

A life insurance policy provides money for your dependents when you die. As with any financial product, there are several things to consider before choosing a life insurance policy:

If your children are young, you may need more cover than if you have older children, as younger children will be dependent for a longer period.

Essentially, it would help if you thought about buying enough life insurance to:

  • Provide an income for your family for as long as they need it.
  • Clear any loans or mortgages you may have (note: you may already have mortgage protection insurance to cover your mortgage repayments).
  • Ensure there is money to cover higher costs that may arise in the future, i.e. third-level education costs for your children.

Do bear in mind that you may not need life insurance or you may need less cover if:

  • You don’t have any dependants or your family is grown up and financially independent.
  • You have sufficient death-in-service benefits through your job or pension plan.
  • You have enough money or investments that could provide a sufficient income for your dependants to live on if you die.
  • Your partner earns enough money to support themselves and any dependents.

Key Takeaways.

Life insurance helps protects your family’s future, covering expenses such as medical bills, funeral costs, debts, mortgage payments, and tuition. Life insurance replaces income for your family in the event of your death, ensuring their financial stability and preventing immediate hardship.

Talk to your Financial Broker who can help you understand if you need life insurance.

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