Wills and Life Insurance - Belts & Braces for the Unexpected!

By: Andrew Regan

Almost one in three adults in the UK - around 15 million people - do not have any form of life insurance, according to a recent study by the Daily Telegraph. Combine that finding with research by accountants Armstrong Watson, which highlights the fact that almost nine out of ten adults don't have a will, and you get a scenario where many families would be adversely affected by the unexpected death of the main earner.

Apart from the emotional distress, there would also be severe financial implications for the family of someone who dies intestate or even worse, intestate without life insurance. Most people wrongly assume that after their death all their assets would be transferred to their next of kin. In most cases where the total value of the estate is less than ?125,000 then it would be inherited by a surviving spouse, but if the estate is valued in excess of that sum and you include children and other relatives into the equation then it is not automatic. In cases of intestacy involving cohabiting but unmarried couples the rules become even more complex where parents and siblings have more right to the estate than the unmarried partner.

Many people in the UK who have taken out life insurance or life assurance have done so to ensure that the costs of their death are covered and that their families are adequately provided for. But, as the recent studies show a lot of those making that sensible provision have omitted to complete a will, so their good work in providing for their family could all be thrown into chaos. How sad would it be to compare life insurance policies for weeks before buying in order to make sure you get the best deal for your family in the case of your early demise, only for all that good work to be undone by failing to write a will should the worst happen?

Many people don't write a will or buy life insurance because they believe they won't die prematurely, and most will be right, but by the same token we don't take out car insurance because we think we're going to crash, or buy contents insurance because we believe we'll be burgled. Like all insurance it is a provision should the worst happen. Double that up with writing a will and your family will thank you should the unexpected ever occur.

Life Insurance
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