Take Action

Life Insurance

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.

 

Need to know

Life insurance cover varies depending on the policy, so make sure you check everything before you decide to purchase. Generally life insurance ensures that:

  • Your debts are covered
  • Your funeral expenses are taken care of
  • Your dependants can maintain their current standard of living
  • A lump sum is paid out in the event of your death

You should consider or review your life insurance if any of the following apply:

  • You’ve recently had children
  • You’ve recently purchased a home with your partner
  • You have upgraded to a bigger home
  • You are recently married or in a civil partnership

Insurers will take into account several factors when calculating your premium cost. These will include your age, health, medical history, family history, occupation and duration of cover.

Most insurers will request that you take a medical to determine your physical condition and to validate the details you’ve provided on your application (for example if you smoke or not).

 

Common life insurance policies

Term insurance – You choose the amount and duration of insurance. If you die during this period, the policy pays out to your chosen beneficiaries. If you don’t die, the money is not returned.

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.

 

Direct

Go Direct

Remember, there are some insurance providers who don't use or appear on comparison sites so make sure you check direct with a few to make sure that you are getting the very best rate outside of comparison providers

 

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
 
 
 

Biggest Savers

PIGGY POST

Join 100,000s of SAVVY SAVERS who read our WEEKLY email. Get our round up of ALL the best money saving SECRETS, FREEBIES and BIGGEST SAVERS. Don't miss out!