One of the first things to think about when you are getting a life insurance
policy is to consider exactly what you expect the payout to do. Click here
to use our online Life Insurance Calculator to see how much life insurance you need.
If you are looking to comfortably provide for your family should the worst
happen, pay off the mortgage and any outstanding debts, your policy may
be quite expensive. If, however, issues like your mortgage and other
loans will diminish over the time, it might be worth considering
decreasing term insurance, as this will offer cheaper premiums over the
duration of the policy.
Many people also look to get policies that will pay off other costs at death,
funeral expenses is one common cost that life insurance policies can
cover, particularly if you are taking a life insurance policy out at a
more senior age.
Many mortgages these days come with some form of protective insurance on
them. This can be in the form of MPPI, Mortgage Payment Protection
Insurance, that will pay out for a certain term should you happen to ill
or unemployed, or mortgage term assurance, that may pay out the value of
the mortgage should the policyholder happen to die before the mortgage
There are some things that you may be able to do to increase the value for
money of your policy. Couples are often offered joint life insurance
policies, which means that the policy pays the same sum if either of the
couple dies. Whilst this can save money, it is only ideal if both
parties are very similar, have the same risk of dying, and require the
same level of cover. It is also worth bearing in mind that if you are
looking to provide for your children and you take out a joint life
insurance policy, should both of the policyholders die at the same time,
the life insurance policy will pay half as much as it would do if you
had two separate policies.
Another thing to do is to make sure that your policy is written "in trust".
This means that the proceeds from the life insurance policy would not be
considered to be part of an individuals' estate when they die and
therefore not be taken into account when you have to pay inheritance
tax. It's a simple thing to do, though will require some form filling
out in the long term you could potentially save the beneficiaries of
your policy a lot of money.
Insurers calculate your policy on the likelihood of you dying; this generally
includes factors such as occupation, whether you smoke or not, age and
current health. Probably the one that can make the biggest difference is
whether you smoke or not, you need to have a year smoke free in order to
make a difference to a policy, but it can save you thousands on your
policy, as well as the money you won't be spending on cigarettes.
Life insurance can provide an enormous peace of mind when it comes to your
nearest and dearest being provided for should the worst happen. Life
insurance policies do not necessarily have to be expensive, and if you
are thinking about getting a policy, take a look at an online comparison
web site for a comprehensive selection of life
insurance policies and some good value deals.