2020 was one of the worst years experienced in living memory, for a lot of people across the world. Lives were put on hold, major milestones suddenly became hard to achieve, careers ended and many other plans were interrupted. Some milestones, however, could not be put on hold. Of these, which were most and least likely achievable in 2020?
Money Supermarket, using data from Google’s Trends and Keyword Planner, looked into which of life’s significant events people have been searching for. They did this to see just how much the pandemic has impacted everyday lives. Money Supermarket specialises in financial services specifically as a price comparison website; it also has a research arm and frequently releases data on common trends they spot in their data.
First, Money Supermarket identified significant events people are most likely to experience in their lifetime. With a list of more than 2000 keywords, one might search for when planning for those events. They then reduced the list to those that best represented searcher intent. Google Trends then sorts them to find the average search interest for each term.
Google Keyword Planner then found an average number of monthly searches for each group of keywords in major towns and cities. Multiply the number of months from March to October 2020, to find the overall figure. They then calculated the total number of searches per 1000 people for each keyword group to find the areas most likely to achieve each milestone.
It was interesting to note that Hemel Hempstead had one of the most search terms related to weddings per 100 residents. It was also one of the most likely places people would have started their own business during a lockdown.
Another milestone people did not think about before the pandemic was finally starting to shop for life insurance. Many people consider life insurance for the first time when they become parents. It can be difficult to raise a child, especially with the number of costs that come with raising a child.
According to The Balance, Life insurance is defined as a contract between an insurance company and yourself in which you agree to pay a premium in return for the insurance company’s commitment to paying a set amount of money to a person of your choice upon death
Should you pass away, outstanding mortgages, funeral expenses, unpaid medical bills, student debt, or other debts and reduced income are the things that would place a heavy burden on those left behind and life insurance would alleviate at least some of it.
Life insurance will also allow you to leave some money behind for your family so they can maintain the lifestyle they are accustomed to, leaving an inheritance, providing funds for college, maybe even fund a charitable cause. Some may also take advantage of various tax breaks for the beneficiary when receiving the death benefit.
There are different types of life insurance available for new parents.
a. Level term life insurance
This is the most straightforward policy and will pay out the same amount whether you die at the start or then of the term. Select the pay-out value and how long the policy will last. You will be covered for the terms of the insurance.
b. Decreasing term life insurance
The value of your insurance decreases as your loved ones grow older and become more independent and as your debts reduce. It is usually cheaper than level term insurance.
c. Critical Illness cover
Available as part of a level or decreasing term policy, though it can also be a standalone policy. It pays out in case you are diagnosed with a serious illness.
Several factors are taken into consideration as a parent seeking out life insurance. Consider any debts you may leave behind, such as mortgages, which may leave your family in a bind if it can no longer be paid off in a timely manner. If premiums that will cover the entire cost of the mortgage are too high, find a reduced cover as a reduced cover is better than none.
If you are considering a joint policy, compare the cost of the policy compared to an individual policy for each parent. Consider that the joint policy will most likely pay-out only once, usually though not always, on the first death of those insured. It is also worth thinking about what may change if one of you were to pass away.
This is true for critical illness too, if one of you falls critically ill, the policy will pay out once and the policy will be ended
The cost of life insurance depends on a few factors, such as:
- Medical conditions or health, including whether you are a smoker or not; a life insurance medical exam may be required to be eligible for life insurance
- The amount of the death benefit is more is costlier
- The term of insurance: permanent life insurance is significantly more expensive than term life.
- Whether or not the policy has a cash value or not
Younger, healthier people will lower the premiums you have to pay.
There are tons of options to settle on when choosing what kind of life assurance you would like. Your age and the private situation will dictate what the foremost needed life assurance coverage is for you, as well as what proportion you can afford.
Consider that the term life assurance is often used for brief-term needs together with convertible or permanent life assurance options to save lots of money, especially once you are starting.
Always review your life assurance choices every few years or whenever your family situation changes, including the quantity of the benefit and who the beneficiaries are.
In conclusion, getting the opinion of licensed life assurance or financial advisors once you are making your choice is strongly recommended because it can assist you to find ways to afford the proper quiet coverage and make sure you don’t find yourself going without life assurance because you’re worried about the prices.