Getting a life insurance policy a big investment, so it’s wise to take your time when making your decision.
You should weigh up the pros and cons to ensure that you know what you’re getting and that you know what to avoid.
Here are a few helpful dos and don’ts that could assist you in making the most of your life insurance policy.
You should take your time when looking for the right life insurance policy. There are hundreds of quotes out there that could be relevant and appealing to you, so you should narrow down your search. You don’t have a time limit to choose a policy so you can spend time looking at all your options. This includes considering whether you need life insurance at all and how much cover you would like. If you don’t have any dependants, you don’t need to purchase life insurance. You should compare quotes to see which life insurance policy will fit nicely within your budget.
There are many companies offering various life insurance policies so you have many options. However, some providers may try and make you believe that you should stick with them for numerous deals and packages. For example, you may already have insurance with one company, but you believe you should be paying less each month. You can of course look elsewhere, and get free, non-obligation quotes by browsing through a comparison website. Don’t listen to a provider if they try to guilt you for choosing to switch to another company with a better deal. You are well within your rights to change policies and providers.
Skip or delay payments
When you do finally accept a life insurance policy deal, you should ensure that you can afford to pay the premium each month. If you miss any payments you could have your policy cancelled and you could end up losing a really great, affordable deal. You should be making fixed monthly payments and to make your life easier you can set up a standing order. So once a month the payment will leave your bank account automatically, so you don’t have to think about it or worry about missing a payment.
Lie on your application
When applying for life insurance you are required to give truthful information about your age and health. You should state whether you are a smoker as this will affect your premium. If you were to give incorrect or untruthful information on your application, you could get found out later on and end up losing your insurance. Be honest to ensure that you are getting exactly the right insurance deal for your needs and situation.
Do your research
One of the first things you need to decide is which type of insurance would work for you. There are two types of life insurance: ‘term life insurance’ and ‘permanent life insurance’. The first, ‘term life insurance’, provides you with temporary coverage. This allows you to decide on a set period in which to be covered. You could choose between 10 to 30 years of cover and would pay a fixed premium each month. ‘Permanent life insurance’ is more of a commitment as it is focused on life-long cover. This type of insurance will give your family a tax-free lump sum payment after your death to help with everything from funeral costs to debt payments. This can significantly reduce any financial stress or pressure that may be left behind. Both of these types of insurance policies have different benefits, so you must do your research and decide which would be better for your situation, budget and family. You can speak to a financial advisor to seek professional guidance and use trusted websites and insurance providers to find information and answers to any questions you have.
Do the maths
If you have dependants or family who rely on you financially, life insurance could be a great safety net to ensure your loved ones don’t feel any financial stress once you’re not around. You should do the maths and find out how much you’d like to leave behind for your family. To get a better idea of how much insurance you need, you can calculate how much you will pay each month, how long you expect to pay into your policy and how much money your loved ones would need to live comfortable lives. By doing this you can make sure you’re not paying too much or too little.
Review your policy
Your life insurance policy could need changing or switching if your situation changes in any way. If you get married, divorced or have children, your policy may no longer be relevant. You should review your insurance policy every few years to make sure you’re happy with it and still able to afford paying the premiums. If you have any life changes, you should ensure that your insurance policy will provide financial help for the right people once you’re gone.
The easiest way to find the best life insurance policy is to use a comparison website. This will allow you to access a thorough database showing an extensive list of providers and their products and packages. You can compare hundreds of prices to find the best deal without having to do much more than a few clicks. To find a great premium, just fill in a form with your information (name, age, contact details, whether you’re a smoker) and the comparison tool will do the rest. You can take your time comparing premiums and seeking out the most beneficial policy.