More often than not, people can get confused about Life Insurance. It ends up putting them off from researching any further. Life Insurance can be the difference between being able to work through the grief process at your own pace. The alternative being forced to face a harsh emotional and financial realities, at the worst possible time.
Deciding what cover to have
There are two basic forms of Life Insurance. If you need cover for a set period, you will need Term Assurance. This will only pay out if you die during the term of the policy. Then there is Whole of Life insurance that covers you until you die. This one is guaranteed to pay out at some point. It is important to choose the correct type of insurance for your needs. Under or even over insuring can land you in some difficulties when it comes to claiming. Click here for advice.
Below are a few things to be aware of when choosing the right cover.
Be the perfect customer
This almost sounds too obvious but making yourself attractive to lenders will work for you. Taking control now of your lifestyle choices will make you a good choice to cover. Life Insurance companies prefer customers to live to the end of the term. Changing your lifestyle could land you the best deal because you are more favorable customer. For instance, if you smoke, find away to give up. You would not only save on buying cigarettes, you would feel healthier and it would save you on your life insurance policy.
Always review your current level of cover
Another obvious one that so many people forget. They buy their life insurance and leave it to run its course. Life changes and your level of cover should change accordingly. You may look at life insurance when you buy your first property. Then you decide to grow your family. Then you need a bigger home. Your level of cover will change throughout your duration with the lender. Always review your financial circumstances as this will change your level of cover.
Knowing the payout plan
It would be ironic if you had arranged your life insurance but hadn’t made sure the proceeds go to the right people. Always think about what is going where. For those that have a partner and children you may want to leave everything to your partner. They can then distribute any money left to the children when they come of age, or any other wants you put into place. Forward thinking is always going to make things easier in the log run.
Cover needs to include homemakers
Valuing earnings from employment goes without saying with Life Insurance. It is also very important to remember the monetary value of homemaking. Childcare arrangements, cooking, cleaning, driving the family around, dog walking etc. will all hold a monetary value in the event of their death.
Make sure the cover is appropriate
This can trip a lot of people up. With Life Insurance, looking at the amount of cover you are covered for isn’t always the best way to approach insurance. Being over insurance can be just as detrimental as being under insured. This is where talking through your wants, needs and circumstances with a protection advisor would be beneficial.
If you are looking for Life Insurance or want to compare your existing insurance to the market, then get in touch with our friendly advisors – 08081 551 807.