Life insurance may be one of the most important purchases a parent or guardian can make. It could give them peace of mind that their family or loved ones will be taken care of should anything ever happen to them.
It can also help take away some of the worries associated with being a parent or guardian. That's why we're here to provide some top tips for parents and guardians when it comes to buying life insurance cover.
What is life insurance?
Life insurance is a type of insurance policy that provides financial protection in the event of an insured individual's death. It provides a lump sum of money to the policyholder's family or loved ones. This could be used to cover funeral costs, pay off debt, or provide some financial stability for your loved ones.
Why is it important?
Almost nothing could prepare you better for the potential financial losses associated with death than life cover.
It could help cover the costs associated with end-of-life expenses, such as funeral costs or medical bills. It may also provide money to help with living expenses during a difficult time, such as education fees or mortgage payments.
More importantly, it can help ensure your loved ones are taken care of, even if you're no longer around. It may also protect your spouse from having to take on additional debt if you share finances.
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Familiarise yourself with the different types of life insurance
It's important to learn about the different types of cover available. This way, you can decide which is most suitable for you and your family. Some of the more common types of life cover include:
- Term life insurance – This is a basic form of life insurance, providing cover for a specific period of time. It pays out a lump sum if you die within the term.
- Whole life insurance – This type of insurance offers life-long cover with a guaranteed payout, regardless of when you pass away. It’s more expensive than term life insurance, but can provide more peace of mind for those with dependents.
- Joint life insurance - Designed to cover two people under a single policy, usually spouses. It pays out upon the death of either person, providing financial security for the surviving partner. This can be beneficial if one partner would struggle to pay the bills without their partner's help.
- Critical illness cover - This type of policy is an ideal way to protect your family's income. The policy pays out in the event you are diagnosed with a serious illness, injury or disability. Most critical illness plans also cover death for no additional cost.
Make sure you have enough cover
When choosing a life insurance policy, it should provide enough cover to meet your family's needs.
Consider factors such as:
Your family's current financial situation – How much would it cost to maintain your family's lifestyle if you were no longer around?
- Debt – Do you have any outstanding debts that need to be paid off, such as a mortgage or car loan?
- Income – How much income do you and your partner earn? Would your surviving partner be able to keep up with the bills if you were no longer around?
- The Cost of Living – Consider the cost of living in your area. Are there any additional costs you need to cover, such as childcare or educational fees?
Adjust your policy if your circumstances change
It's important to remember that life insurance is not a one-time purchase. Your circumstances can change over time, and it’s important to make sure your policy is still meeting your needs.
For example, if you move house or get married, you may need to adjust the amount of cover you have. Similarly, if your children grow up and become financially independent, you may want to reduce the amount of cover you have.
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What Happens If You Can't Pay Your Premiums?
If you are unable to pay your premiums, there are usually a few options available.
For example, if you are struggling to pay your premiums because you’re currently off work ill, and your plan includes waiver of premium, your insurer will cover your premiums for you and you won’t lose the cover.
Alternatively, they may be able to grant you some sort of payment holiday or repayment plan.
It’s important to speak to your insurer before making any decisions about your policy. They will be able to provide more information and advice on what options are available.
Shop around for the best quotes
Different insurers offer different levels of cover, and some may be cheaper than others. Hence, you shop around and compare quotes from different insurance providers to find the best deal.
One way you can find cheap quotes is by using our free online quote service. Simply enter some basic details, and we’ll show you affordable quotes from leading providers. It’s then just a case of choosing which one you feel suits you best.
Get advice when needed
If you're still unsure about which type of policy is right for you, then it's a good idea to speak to an advisor. You’ll benefit from their expertise and have the peace of mind that your Life Insurance policy is in place. They can answer any queries you may have, so you can make an informed decision. So don’t hesitate to get in touch today.
Speak to the experts...
Give our advisers a call today.
Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.
The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way.
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