Do tenants need life Insurance?

Renting for the long-term has become more common in recent years and this means there is a range of new things for tenants to consider.  Gone are the days when renting was just for the short-term while saving up to buy a property. These days, an average tenant could be anyone from a middle-aged renter to a retired pensioner or parents with dependent children. 

Private renters live in rental accommodation for an average of 4.1 years, with older renters tending to live in rental homes longer than their younger counterparts.  One of the issues raised by people renting for longer is the formation of what is known as a 'protection gap' when it comes to people taking out life insurance. Fortess Homes will help you understand life insurance. Below are the things you need to understand first. 

What is the protection gap?

 A protection gap starts to form where the people who need to be taking out life insurance aren't doing so. Life insurance is unlikely to be something they consider taking out. That's because, as renting is traditionally associated with younger people, renters are not prompted to take out these important policies. However, as the average age of tenants increases and a wider demographic of people live in the rental sector, this poses a problem. 

Why is life insurance so important?

Life insurance, which could cost a few pence a day or take the form of a monthly payment, can provide for your family or dependents in the event that you pass away. It can be paid out as a lump sum or in regular payments and is designed to cover living costs, including rent payments.  There are generally two types of life insurance - term life policies and whole-of-life policies. The former covers you for a fixed period of time, while the latter will mean you're protected no matter when you die.

The cost of your life insurance will depend on a number of factors, including your age, lifestyle, general health, whether you smoke, and the length of the policy you are looking to take out. Life insurance is not always an easy thing to think about, but it's hugely important to futureproof the financial security of your loved ones in the event that you die unexpectedly.   As well as providing financial cover in that event, life insurance gives you peace of mind now that the necessary steps are in place for the future.