Do you need life insurance if you're renting?
When you think of life insurance and the reasons you might need a policy, does your mind jump straight to children, mortgages and marriage? Well it doesn’t always have to be the case! Although those are all triggers to get cover, they are not the only reasons for needing a life insurance policy.
There are many different types of policies available that you may not have heard of which can help protect you even if you don’t have a mortgage! This is why receiving advice from protection specialists is the best approach when it comes to finding the right life insurance policy for your circumstances.
Why do renters need life insurance?
With most of us feeling the effects of the recent cost of living crisis, this is not the time to be taking risks with your finances. According to the Office of National Statistics, private rental prices paid by tenants in the UK rose by 2.7% in the 12 months to April 2022, up from 2.4% in the 12 months to March 2022.*
Having a life insurance policy in place can ensure that if the worst were to happen, your loved ones could be financially protected and still be able to afford rental payments every month.
But life insurance isn’t just for your loved ones, it can also be used to protect yourself too. There are several life insurance policies available where you are able to use the pay-out for yourself, such as critical illness cover and income protection insurance. 
Income protection
If you haven’t heard of income protection insurance yet - let us fill you in! If you are renting and either self-employed or in employment, working more than 16 hours a week, then income protection could be the perfect policy for you.
Income protection will pay-out if you are unable to work due to illness or injury. The monthly payments will begin after a selected deferred period, which you will choose at the point of application. The payments that you receive can be a selected percentage of your income, typically up to a maximum of 60%.
As well as helping with rental payments, this policy could be used to contribute towards bills, food shopping, childcare costs and so much more. This policy is designed to help you financially stay afloat during a tough time, giving you time to recover without having to worry about money and keeping up with your outgoings. Try our easy-to-use income protection calculator to see how much it could cost to protect your income.
Critical illness cover
Sadly, no one knows what’s around the corner, and being diagnosed with a critical illness would not only affect you and your loved ones but it could mean you’re unable to continue working full-time, which could result in you being unable to pay your rent. A critical illness policy pays out a lump sum if you were to be diagnosed with an illness defined within your policy conditions.
According to the Millennial Life Insurance Gap report by Legal and General in 2019, 18% of those renting who don’t have life insurance, haven’t got it because they don’t want the extra expense.** However, if you were to be diagnosed with a critical illness, the impact it could have on your life could be detrimental and could result in future expenses far higher than the cost of paying a monthly premium for a life insurance policy. The cash injection that a critical illness policy provides could negate the risk of having to borrow money from your loved ones, delve into your savings or take out a loan in order to pay for your rent and bills.
Get a quote for your life insurance
At Busy Bee life insurance, our specialist advisors are equipped with years of industry knowledge and experience to be able to help you find the best policy to protect your circumstances. By discussing your insurance needs with a protection specialist, we are able to provide unique advice based on your health, lifestyle and occupation. Let us do the hard work for you and start a free quote today!
*Office of National Statistics
**The Millennial Life Insurance Gap - Legal and General Report 2019