November 13, 2018
What should you be looking out for when considering a Life Insurance policy?
Let us give you some top tips!
Select the right kind of policy for your circumstances
Make sure you select a policy that fits your individual circumstances.
Level Term – runs for as long as you select and the pay-out remains the same.
Decreasing Term – is usually purchased to run alongside a mortgage and the pay-out upon death decreases as the remaining term on the mortgage decreases.
Select an appropriate term
If there is one thing most people can agree on it is that life is unpredictable so our top tip is to have enough security to cover most eventualities.
The longer the term you select the more peace of mind you may have. Many people will select a 20 year term when they have their first child, which is better than nothing but would mean after 20 years the security of being able to support education, house purchases, weddings etc would be gone, whereas as a longer term would provide more peace of mind that if the worst happens you can still continue to provide a contribution.
Updating your policy
Don’t forget as life changes you may need your policy to change.
Perhaps when you first set up your policy you were single but fast forward a decade and you could be married with kids. Have you thought about increasing your cover to keep your family safe from financial hardship if you were to die?
Or vice versa, perhaps you once set up your policy with family in mind but there may have been a breakdown or change in circumstance that has resulted in you not needing so much cover?
Paying your direct debit
Always ensure that your premiums (in whatever frequency you choose to pay them) are always made in full and on time.
Failing to keep on top of payments may risk your loved ones being able to benefit from the policy. If you are ever having any sort of difficulty making your payments let us or your insurer know so we can look to help you
Life is not traditional anymore and dependants no longer simply means your own children.
Perhaps you care for your ageing parents? What would happen if they outlived you – would the quality of their care be impacted without your contribution?
Perhaps you have close nieces, nephews, step-children, godchildren or other young people you love and support?
Perhaps you jointly own property with a friend or relative? If they were to outlive you could they maintain the household cost without you? Would they lose the property?
Take some time to think about all the people in your life that could suffer financially if the worst was to happen especially if you have no other provision to pay for your own funeral which could be upwards of £3,000.
Our absolute, absolute, absolute top tip is to always be truthful in your application. Failing to disclose medical conditions, ailments or lifestyle habits could severely jeopardise any claim made after your death. Quite simply, it is not worth the risk and the premiums you pay could be pointless if you have not fully disclosed the truth during your application.
Remember – we care, and if you would like to discuss any of the above mentioned options further just get in touch via the details on our websites contact page.
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