Do you need life insurance?

our top five tips when it comes to looking at life insurance
Oct 10, 2018

What would happen to your loved ones if you died?

This is a difficult yet necessary for all. If your income is important to your loved ones coping financially, they could find themselves short of money very quickly. Life insurance will provide your family with a guaranteed cash lump sum or an income for a fixed period of time to help them cope in the event of your death.

It can make the difference between your loved ones struggling financially – adding more stress at the worst possible time, and being able to pay their mortgage or rent, and maintain a similar standard of living whilst coming to terms with your death.

Here, we provide our top five tips when it comes to looking at life insurance: -

How to know what to spend

As circumstances vary for everyone, this can be tricky to estimate. Ask yourself “if I died tomorrow, what would an insurance lump sum be used for?” You may just want to cover any existing debts (such as a mortgage) or you might want to also cover a few years of lost income so your partner does not have to worry about working.

Factors affecting the cost of life insurance?

Age, smoking status, general health and lifestyle are all key factors affecting cost. For healthy, young people, the most basic life insurance policies start from just a few dollars a month. The key thing is, whatever sort of life insurance you want, it is vital to shop around to ensure you are not paying over the odds.

Thinking long-term?

If you plan to have all or some of your life insurance long term, consider some level premium life insurance where the costs will not increase as you get older. Long term, you can afford to keep the cover longer and more importantly, save thousands of dollars in premiums.

When should I review my life insurance?

It is a good idea to review the level of life insurance you have whenever you celebrate a major life event - such as getting married, having a child or buying a home. This is to ensure the cover you have is sufficient to prevent your loved ones suffering financially in the event of your death.

What if my life insurance doesn’t pay out?

Life insurance claims are generally fairly clear-cut, for obvious reasons. Generally, the only reason why claims are not met is because the policyholder failed to disclose important information when applying for the cover.

The key thing to ensure you find cover right for you, is to get advice from a professional adviser who has access to all providers. This ensures that you get the best advice for your personal situation.