If you need to choose a life insurance policy it’s always best to shop around so you can pick and choose the best policy to suit you. Not everyone has the same requirements when it comes to life insurance so checking out different policies and providers is always a good idea.
The majority of people choose term life insurance as this is more affordable and will be all the provision that most people need.
What are the benefits of term life insurance and what provision will you need?
Term life insurance is much want it sounds like; you pay a premium each month over a set term of years. If you die within that period then the policy pays out and offers financial protection to the family your leave behind. If you don’t die then you get your premiums back at the end of the term. For most younger and healthy people this is the best option as by the time the term is ended many of your major life expenses will have ended.
You are only likely to take life insurance out in the first place when you have a home and family to protect; so if you have your insurance over a 20 year term your mortgage will be virtually paid off and your children nearly grown by the end of it. And if you die before the end of the term then your family has the money to pay off the mortgage and pay any relevant school fees.
Of course you need to make sure that you have enough cover to meet all the relevant costs. It may be tempting to opt for the cheapest premiums but that is false economy if your family is not fully financially protected when you die.
What if you are older, or have health issues?
It can be more difficult to get term life insurance if you are older or if you have a chronic health issue. Obviously insurance providers are going to be reluctant to take on the risk of insuring someone who is more likely to claim. In this case many people opt for whole life insurance which involves paying a premium for the rest of your life and covers costs like funeral expenses in the event of your death.
Your premiums will be higher than for term life insurance but this doesn’t mean you can’t still shop around for the best deal. One of the best ways to do this is via a reputable broker who will know the pros and cons of the different policies.
Whichever type of policy you decide on you should always pick and choose where you get it from so that you get the best value for your money. You should always check if you have premium guarantee on your insurance as this means that you will at least know exactly how much you will be paying each month. If you do decide to change your policy or provider be careful; although your new policy may be cheaper the costs entailed in changing may still make it a bad decision.
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