Is Your Family Protected?
Life insurance is a key source of funds for your loved ones after you die. If you were to die today, who would pay off your loans? Who would pay for your funeral arrangements? Would your spouse be able to afford his or her current lifestyle without your income? Life insurance is purchased to help support those who are left behind as well as covering the necessary expenses that follow your death. When you work with us, we’ll bring you the latest offerings from companies such as TESCOBANK, SAINSBURY, ZURICH and more in order to give you choices and the opportunity to compare plans from different companies on different points. Protect your loved ones immediately by seeking out the right life insurance policy today. Your family will be safe when you're gone, and you'll be able to enjoy the peace of mind knowing you've done what is best for them.
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How Much Cover Do I Need?
The key question is how much cover to buy. Your job may provide some, but it is never enough. Having enough coverage is a calculation that depends heavily on your own life circumstances.
A quick way to estimate how much coverage you'd need is to add the cost of funeral arrangements, the amount of debt that would be outstanding today if you passed and the cost of paying off your home or the equivalent of your salary for a period of time to assist your spouse in household costs. If you have children, the number will need to be even larger to accommodate the cost of childcare while your spouse works as well as the additional expenses of raising children. The amount you'd ideally need can be quite shocking, actually, but it's a sound investment for peace of mind.
Types of Life Insurance
There are two primary types in the UK - term life and whole-of-life. Whole-of-life pays an agreed sum when you pass and is usually more expensive than term life. Term life is cheaper because you're buying insurance for a set period of time, 10, 15 or 20 years, at a stretch. The term of your insurance should cover the length of your mortgage and the number of years your children will be dependents.
The trick with term life plan is that it only pays out if you die within the set term that you agreed to when you purchased the insurance. If you were to die a month after your term ran out, the provider will not pay your dependents as your coverage ran out.
Within the term life cover, you can find several types of plans. The first is a level-term insurance which requires a fixed monthly payment for a set number of years. Level-term is popular, but you can also buy increasing term insurance with higher premiums as the coverage increases every year. Decreasing term insurance has cheaper premiums, but a reduced payout every year.
Life insurance is not a one-size-fits-all sort of policy. Within the policies, you'll find any number of exclusions and add-ons. For example, policies that require a physical on an ongoing basis will be more complicated, but likely less expensive than others. If you engage in certain types of sports or have a particularly risky job you may be excluded from coverage all together.
The criteria are complex and it is worth your while to shop around when considering a life plan. FSA-regulated companies and brokers are required to provide you with a Key-facts document if they are selling one. This document is a great starting point for comparisons as it outlines the services offered and the key features of the policies the company is recommending.
What Does It Cost?
Any insurance product does not have a set price, and even within a similar population of people, prices can fluctuate. Each of the types of insurance has a different price point due to its features and exclusions. Your situation will create a different pricing structure as well. If you're young and healthy, your price will be considerably lower than an individual who is older and has a much higher risk of a medical problem - especially if conditions such as high blood pressure or high cholesterol are already present.
Lifestyle also plays a part in the pricing of your policy. If you smoke, your premiums will go up. If your job on oil rigs and platforms puts you at greater risk than the accountant in the third-floor office, you can expect your premiums to rise as well. In essence, the greater the likelihood that you'll die, the higher your premiums will be. Gruesome, perhaps, but a necessary calculation for the insurance companies.