Life Insurance and Renting. Should I Get Cover?
Do I really need life insurance if I rent my home? You would assume that life insurance is not necessary if you rent your home, but like with many other things, it depends on your circumstances.
Due to rising home prices, the number of private-rented households has increased by 60% since 2007. Due to the fact that insurance is typically sold at the time of a home purchase, this has left a large number of renters vulnerable. Mortgage protection is a sort of life insurance that protects your mortgage, ensuring that your bank or mortgage provider will be compensated in the event of your death before the balance is paid in full. Although you might not require a sizable number to be paid off if you rent an apartment, your biggest monthly expense will likely be rent and any related expenses.
If this is the case, what will happen if you fall ill and have to miss work in order to recover or take care of a loved one? What if this turned out to last for a long time—say, six or twelve months? Could you pay your rent on time?
If the answer is no, consider income protection or critical illness coverage (CIC) (IP). While CIC will provide you a lump sum to use anyway you like – for example, to pay for care for a loved one, medical bills, or energy bills – IP is typically more expensive but will give you a monthly amount to help cover your bills. Both of them do so, although in different ways.
Do I really need life insurance if I rent a home? No matter if you own your home or rent it, you will benefit from some type of life insurance, critical sickness insurance, or income protection.
Speak with an advisor to learn more about what is best for you. When signing a rental agreement, no one consults a protection advisor, but you still have to make the rent payment.
To locate the finest insurance policy for your demands and price range, an adviser will get to know you, your money, and the entire insurance industry. At Multiquote, our mission is to help. We don’t charge for advice, so feel free to reach out to us for additional details or to learn what could be best for you.
