How to save for your loved ones once you’re gone

Spring clean your finances to save for your loved ones.

We all know that getting older is a natural part of life, and everyone wants to make sure their family and loved ones are provided for once they’re gone. That’s why taking out an over 50s life insurance plan will give you and your family peace of mind, knowing that when you die any bills and funeral costs will be taken care of. If you’re wondering if you need an over 50s life insurance plan, it is ideal for anyone who has children or a partner who may find it difficult to cover any bills once you’re gone or you want to leave them with a lump sum.

A recent study by Finder [1] found out that 42% of people with a mortgage have no life insurance in place.

Given that so few people have signed up to a life insurance plan and with the average funeral costing £3,757 [2], they may be inadvertently creating a hole in their loved one’s finances. Parents and grandparents have been a strong and supportive figure in their children and grandchildren’s life, helping them prepare for the future at every opportunity. This is why it’s so important to avoid leaving them in financial difficulty and continue to support your family even after you’re gone.

Saving money each month can be very difficult for some, especially with the rising costs many have felt during lockdown. Such as, rising electricity bills and larger supermarket bills from being at home more. As well as any extra costs from working and educating at home like rising Wi-Fi costs and if any additional study materials or technology, like a new laptop or tablet has had to be bought.

However, this is the perfect time to spring clean your finances. It’s important to start by looking at your total outgoings and any direct debits and ask yourself some questions to help start your savings journey. Is there anything you can live without? Is there a cheaper energy tariff, phone deal or supermarket you can switch to? If you are sharing subscription or streaming services with someone could you share the cost?

Initially, sticking to a new budget can be difficult, but it’s worth remembering that any money then saved through these saving methods each month can be put into an over 50s life insurance plan.

Acknowledging that we won’t be here forever and thinking about what will happen after we die may be uncomfortable topics to think about. However, planning ahead for whatever happens is a great way to look out for your loved ones.

Shepherds Friendly provide Over 50s Life Insurance, giving you the reassurance that when you die, you’re leaving a fixed, tax-free cash lump sum for your loved ones, which can be used to cover funeral costs, unexpected bills and provide financial security. A plan can be opened from just £10 a month, with the option of paying up to £50 a month, so the higher you pay in, the more your loved ones will receive.

Anyone aged 50 to 80 can start a plan and premiums are no longer payable after the plan has been in place for 30 years or when you reach age 90, whichever comes first. You will never pay premiums past the age of 90, regardless of when you take out the plan. The policy provides cover for the whole of the policyholder’s life, and there are no medical questions, so acceptance is guaranteed. You can find more information on their website.

Shepherds Friendly is a mutual society, which means it is owned by and run for the benefit of its membership.  As a member you can be sure will always treated fairly and receive a high level of customer service.

Sources:

[1] https://www.finder.com/uk/life-insurance-statistics

[2] https://ukcareguide.co.uk/funeral-costs-in-the-uk/