Many people in Bermuda would never think to exclude insuring their most valuable possessions. With a climate that is susceptible to hurricanes, most people’s homes are insured. And in a remote location where necessary healthcare can be a plane ride away, most people’s health is insured. And, of course, with small busy roads and motorbikes zooming around, most people’s vehicles are insured. So, in a location where the cost of living is one of the highest in the world, why do people elect to not insure their income for the future security of their families or businesses?

In this article, we will explain why so many people opt out of life insurance and why it matters.

A common goal among working adults is to own their home. Many work tirelessly to pay off their mortgage but may not live long enough to complete that mission. Should a premature death occur, a well-planned life insurance policy can potentially create an estate or preserve an estate. It can settle any outstanding debts such as a mortgage or consumer loans, provide funding for business continuity, settle estate death tax, provide financing to maintain property as well as leaving a legacy. Many homeowners in Bermuda spend a significant amount of their income on their personal real estate that can take decades to pay off, and life insurance helps to protect that investment.

One of the many misconceptions about life insurance is that it’s too expensive in an already expensive economy. Every family will need a different amount of life insurance based on their need, what they want to protect, how long they would require support, levels of debt and savings. A life insurance professional can conduct a financial-needs analysis based on your financial obligations and you will likely discover that it is too expensive for your dependents in this expensive economy to live without your income.

There is nothing easy about estate planning. What is often overlooked is that by planning, and investing in life insurance, your loved ones will then have the liquidity in an estate to pay off taxes or mortgages. It will also ensure that non-liquid assets, such as a cottage or business, do not have to be sold, but can be left to your beneficiaries — carrying on your financial legacy.

Despite misconceptions about its affordability, a tailored life insurance plan can be a crucial investment for your loved ones’ wellbeing, providing them with the necessary support in a high-cost economy. So, let us recognise the significance of life insurance, especially during Life Insurance Awareness Month, and take the necessary steps to protect your family’s future and financial legacy.

• Jonathan Robinson is the Life Sales Manager at CG Insurance