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What’s The Price Of Your Life And How Much Life Insurance To You Really Need?

July 24, 2012 by  
Filed under Finance

What’s the price of your life?

You may have decided that life insurance (assurance) is the best way to protect your family’s future. But getting the lowest possible insurance premium, taking into account the right length of term and benefit amount, is not an easy process.

Premiums with life insurance quotes can vary enormously in some instances so it is worth shopping around.

Do I take term or whole life insurance cover?

There are two basic options when shopping for life insurance which is a term or permanent policy with term life covering you for a specific period and permanent covering you for the whole of your life.

If you have short-term financial obligations such as a child’s education then term life insurance is usually more than ample and can offer good coverage for the least amount of money.

But if you want to create an inheritance and protect your family’s future for a much longer period then a whole life insurance plan is the best option.

Not all term insurance policies are the same

Although all term insurance policies cover you for a certain amount of time there are different kinds.

Flat-rate (or level) cover – The amount of insurance cover is fixed at the time you take the policy out

Decreasing (or mortgage protection insurance) cover – The insurance cover amount decreases over the term of the policy and more often than not is designed to tie in with the outstanding amount on your repayment mortgage.

Family income benefit – This provides your loved ones with a regular income not a lump sum in the event of your death. But it is worth bearing in mind that these payments only last for the period of cover.

Increasing term assurance – Premiums and benefits will increase each year in line with inflation. This is usually an option for you if you want to ensure that your family can carry on in the lifestyle it has become accustomed to.

Convertible term assurance – This gives you the option to convert to a whole-of-life insurance policy with the same insurer at the end of your policy.

What will affect my life insurance quote?

Your age and state of health are the main factors determining how much you will pay for life insurance cover. Generally the younger and fitter you are the less you will pay.

If you are a smoker you will pay more. But remember that life insurance premiums have fallen in the past five to 10 years so it may be possible to get a lower premium than the one you have now.

Things to consider before selecting a life insurance quote

* Read the policy over carefully. Make sure you look at the clauses and exclusions sections in detail

* Check to see what life insurance cover you may already have (through work for example)

* Always have your Life Insurance policy written in trust. This means that in the unfortunate event of your death the money goes directly to the named person and also avoids the family having to pay inheritance tax

* Are you likely to need critical illness insurance in the future? Then consider adding it now to the life insurance policy you’re arranging

* Will the life insurance policy enable you to vary payments as personal circumstances change?

I don’t have the time for all this? Is there not an easier way?

With so many life insurance companies out there it can be very time consuming sourcing quotes from each individual provider to ensure you get the best deal.

We can help you compare costs by providing you with a free, online life insurance quote from some of the leading life insurance company’s in the UK.

Get the best life insurance quote for your circumstances now:
http://www.moneyexpert.com/Insurance/LifeInsurance.aspx

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