First time parents should think about life insurance
Life insurance has always been traditionally offered at the same time as a customer buying their first home, as a mortgage is often people’s biggest ever financial commitment. Customers will traditionally extend their life insurance cover as and when they have children.
Tradition, however, has quickly gone out of the window, and customers are now facing up to the financial reality of not being able to afford a first home as early as previous generations were able too. In fact, the average age of the first time buyer has now reached 38, while the average age of the first time parent is just 26, leaving many without any form of financial cushion for their family if they were to lose their life in the twelve year gap before buying their first home.
Whilst life insurance payouts are primarily used to pay off a mortgage, the money essentially guarantees the child somewhere to live, and financially stability for its entire upbringing, something families without life insurance or a home would not leave for their children if they died without a life insurance policy.
Life insurance should be purchased by customers when they take on their first financial responsibility, and with many finding that is their children, life insurance should no longer be associated with the first mortgage.