By Elisha Burberry For many people, life insurance is one of those things that is often talked about but seldom bought. Of these people, many will likely have families who might struggle if the chief breadwinner is no longer around to provide.
A lot of parents – particularly mothers – will go to extraordinary lengths to ensure the best for their children. Some people will sell up and buy a house in the right catchment area so their kids can get into the best schools. Others will take on an extra job or work all the hours god sends just to afford private schooling. Great?
So why do we falter when it comes to paying out a little extra every month to make su
The cost of life insurance has become more affordable recently, so there’s never been a better time to consider taking out life cover and, with a little time and effort, you can ensure you get the best policy for your needs to provide peace of mind for you and your family.
Buying insurance can be a serious decision, so most people tend to do this face-to-face with a sales person. The good thing about this is that you?ll be able to ask all the questions you need to, and hopefully get a competitive quote. However, you should bear in mind that like getting advice on a mortgage from an estate agents, many insurance brokers have preferred insurers and it is possible that the deal the broker is trying to sell you will not necessarily be the best for your needs.
You should also consider whether or not you want your policy to have guaranteed or reviewable premiums. With a guaranteed premium, you know that your payments aren’t going to fluctuate throughout the life of your policy. Reviewable premiums, on the other hand, might look cheap to start with but they can rise, depending on several mitigating factors throughout the life of the policy. As a result, you could end up paying more than you need to.
Something else to bear in mind is whether you want level-term or decreasing-term assurance. With level term assurance, the payout will stay the same throughout the length of the policy.
With decreasing term assurance, on the other hand, the payout is reduced the longer the policy runs. Normally, decreasing-term assurance is only used to pay off a mortgage, in the event of your death. As the amount outstanding on a repayment mortgage decreases over time, your cover should reduce as well. Moreover, you can also arrange for your policy to pay a fixed monthly income to your beneficiaries, instead of a lump sum.
Premiums can differ greatly between insurance companies for similar levels of cover and terms. As a result, it is often a good idea to take the time to do a bit of research and shopping around to find the right policy.
In recent years there has been a huge upsurge in websites that can provide and compare life insurance quotes from a range of insurance companies. All you have to do is answer a few simple questions about your general state of health, provide some personal details such as your height, weight and age and, within a few seconds, you’ll have a range of competitive premiums from a selection of insurance companies that closely match your requirements.
Then, it’s up to you to select the policy that?s best suited to your needs, click a button and buy – it really is that simple!
USEFUL SITES
Motley Fool, a must-read for everything to do with money has a tool that can help you calculate your life insurance quote. Click here to visit it!