It may be a hard thing to accept, but we sadly aren’t here forever. What matters is what we leave behind.
A good life insurance policy will ensure that your family can cope financially in the unlikely event that anything should happen to you.
Shockingly, 56% of Britons(1) still don’t have a life insurance policy.
Many believe that policies are too expensive, but the reality is they don’t have to be.
Read on to learn more about life insurance and to find a policy that suits you and your loved ones.
Common life insurance policies
Decreasing term cover – Useful if your main reason for taking it is to cover a debt, like a mortgage, which will decrease over time.
Increasing term cover – Useful if you wish your potential pay out to rise. Can be linked to an inflation measure.
Whole life policies – These are more expensive but guarantee a pay out when you die, whenever that happens to be. No timeframe attached.
Renewable term cover – These policies provide cover for a fixed period which can be extended once it comes to an end.
Joint insurance cover – These policies will pay out in the event one person dies. This can be cheaper than taking out two policies yet the cover only lasts until the first death.
The inside track
- You’re never too young to take out a life insurance policy. The younger you are when you apply, the cheaper the premium is likely to be. It never hurts to be covered at any age.
- One of the biggest factors when it comes to decreasing your premium is your health. Smokers can obviously expect to pay more, as can those who are deemed to be at higher risk of disease after a health check-up. Get healthy, live longer and pay less!
- Never, ever lie on your life insurance application and be sure to notify your provider should any of your circumstances change. Your insurance provider may not pay out if the information you provide isn’t wholly accurate.
- Policy duration is important. For example, if your youngest child has 18 years left of education, you may want to the policy to last for this duration.
- Remember to take into account any death in service benefit from your employer when deciding how much cover you may need from an insurer