When it comes to Life Insurance, the most important thing to know is that if you have other people who depend on your income and you don’t already have a policy in place, it’s really important that you consider taking out cover as soon as you can.

To understand what type and level of life insurance you need, it’s important to take on board your individual circumstances, like savings, mortgages and existing credit arrangements in place. As everyone’s situation is different, so is the type of protection you need and depends on your personal situation and what stage you are in life. 

Your age, health in general (including if you smoke) and lifestyle are just a few factors that are considered when applying for cover and how much your monthly premium will be.

Here are some facts that may help you if you’re considering buying a Life Insurance policy:

1. Life Insurance Isn’t Usually As Expensive As You Might Think

Many people overestimate the cost of life insurance, which perhaps leads them to swerve the idea altogether.  However, Life insurance should be thought of as fantastic value for money when you consider that cover could work out at just a few pence a day.

Each insurance company has their own guidelines for what can be underwritten. If you have health conditions, some can be more lenient (and less expensive) than others, so it’s certainly worth shopping around to make sure you’re getting a good deal.

2. Cover Can Be Arranged In Under 30 Mins

What else can you do in half an hour? Watch a TV programme? Take a nap? Or, have the peace of mind that comes with having a life insurance policy in place. Thanks to the internet, it’s never been easier (and quicker) to arrange and compare low cost life insurance policies online, with insurance providers always looking to streamline the process.

3. Cover Is Cheaper When You’re Younger

Simply put, the younger you are when you take out your policy, the cheaper your monthly premiums will be - so keep this in mind.

4. Cover Through Your Employer May Not Be Enough

Life cover through work is certainly a good benefit to have, but you can’t always assume that this cover is adequate for your needs. Many employee packages include a ‘death in service’ benefit. This covers you for a multiple of your salary that would go to nominated loved ones if you were to die whilst you worked for the company, so you might not even consider requiring an additional life insurance policy. 

Bear in mind however, there’s very little control you have in terms of individual cover levels and the moment you stop working for the employer, you’ll no longer be covered under that policy.

Your loved ones will be much better protected by having a policy on top of whatever benefits come through your employment.

Which Type Of Policy Is Right For Me?

This is subjective to your specific requirements, but if you have other people who depend on your income and you don’t already have life insurance in place, it’s important that you consider taking out a policy as soon as you can. 

Generally speaking, there’s usually no better time than now to arrange life insurance cover, however it’s important to understand the range of options and products available to you, whatever stage of life you’re at.

The two types of life insurance policies you’re most likely to come across are ‘term insurance’ (the more basic form of life insurance) and ‘whole-of-life’.

‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) eg. 10, 15 or 25 years - and will pay out if you were to die during the term of the policy. There’s no survival lump sum payable at the end of the term.

With a ‘whole-of-life’ insurance policy, the clue is in the name. Unfortunately, we all die one day, so as this policy is ongoing, it will pay out a lump sum whenever that day comes. Naturally, these policies are typically more expensive than term insurance policies since as long as you keep paying your premiums, the insurer will always have to pay out, whereas you may outlive a term insurance policy.

TIP: ‘Whole-of-life’ insurance is also known as life assurance by many insurers.

One of the main benefits of whole-of-life insurance is that it can help your family deal with any bills associated with inheritance tax. It also may appeal to you if you’re determined to leave some form of inheritance to your loved ones, or if you want to help with your funeral costs.

Do You Already Have A Policy?

Many people who have a life insurance policy in place tend not to review it very often, however, it’s important to understand if the policy still meets your needs (as well as finding cheaper life insurance) - that’s where Cavendish can help.

If you’re not sure, speak to us over the phone and we’ll be able to help guide you to what the best option will be for you.

Speak With Us

Cavendish Online is committed to ensuring our fees and charges are highly competitive and transparent - so you know exactly what you are paying for when you use our different services. 

We can help you find the most suitable and affordable option for your individual circumstances, so we seek products from leading financial service providers - with minimal charge amounts. To find the best policy for you, we won’t limit your search to just one company.

If you don’t currently have any cover in place or you’re unsure if your cover still meets your needs - the team at Cavendish can help. Speak to us today for more information and to get a quote for life cover.

Call for a quote today...

Our team of expert protection consultants are here to help. Call for a quick quote and more information now: 

01392 241 850(Monday to Friday, 10am to 6.30pm)

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