Our customers’ financial wellbeing is important to us at PensionBee and goes directly to our mission ‘to make pensions simple, so that everyone can look forward to a happy retirement’. When it comes to planning for your retirement, setting up and contributing to a pension is the most essential financial product you can have in place. It’s important that when you stop working you have enough money to cover your daily living costs as well as any other financial expenses which help you fulfil your retirement goals, which may include travelling the world or simply living without financial worries.
However, pensions aren’t the only product that can help you with your financial wellbeing. Life insurance is another important financial provision that enables you to save for retirement knowing you and your family are covered should the unexpected or the worst happen. We’ve partnered with LifeSearch, a leading independent life insurance broker, who can help you find the right financial cover for you and your loved ones.
Financial protection for you and your family
Life insurance can be a critical source of financial support for you and your family should you experience a significant life event such as being unable to work due to injury or when you pass away. There are many types of products that fall under the ‘life insurance’ umbrella, such as mortgage life insurance; which will cover any outstanding mortgage payments should you pass away before a mortgage is fully paid, critical illness cover; which pays out a lump sum if you’re diagnosed with a life-changing illness and are unable to work and income protection; which can cover a substantial proportion of your income during periods you’re unable to work due to sickness or injury.
Unfortunately, many people in the UK aren’t financially well-protected. Research by Direct Line Group found that only 35% of people have life insurance coverage despite six in 10 agreeing it would benefit their family. Similarly, other research has shown that, again, only 35% of UK adults have made a will. Without a will, your assets and property may not go to who or where you want. Having the right financial protections in place can bring you some peace of mind that any outstanding financial commitments can still be met should the unexpected happen.
Financial products that work together
Life insurance and pensions can work together to provide financial protection for different life stages and events. Upon your death your pension will usually go to your beneficiaries, however, its value may not be enough to cover any financial commitments, such as mortgage payments, you may leave behind which your family would be left to pay. So, whilst a pension will help meet your costs in retirement, life insurance can help protect your loved ones from facing financial difficulties and ensure the full burden of responsibility for meeting payments doesn’t fall on your family.
The need for life insurance is highlighted more clearly in certain life circumstances. For example, in the case of a pension, if you meet the criteria for ill-health retirement before you turn 55 and are unable to permanently work again you may be eligible to withdraw from your pension early, however, your pension at that point may not be large enough to ensure you don’t run out of money whilst in early retirement. Similarly, the COVID-19 pandemic saw an increase in demand for income protection insurance, where the insurance covered periods of unemployment that many people experienced.
Partnering with LifeSearch
Working with LifeSearch means partnering with a leading independent life insurance broker who shares our concern for helping customers improve their financial wellbeing. With our mission to help make pensions simple so that everyone can look forward to a happy retirement, life insurance too can play a role in helping customers become more financially confident.
Finding the right life cover can help you save towards your retirement knowing you and your loved ones are protected should life throw the unexpected at you. LifeSearch’s dedicated to finding the right life cover that suits its customers’ needs, plans and budgets, having protected over 1.7 million customers since 1998, putting their needs and not those of the insurers first.
Learn more about what LifeSearch offers and how it can help you find the right financial cover for you and your family.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
