Life insurance is definitely something that you should plan for in your life but the fact that it’s a complicated process puts a lot of people off taking out a policy at all. When you decide to take out your policy there’s a few tips that you should remember to help you breakdown the jargon and make choosing a policy a little simpler and easier.
The first thing you should do is compare any policies that you think would be suitable for you and your budget. The internet is a great place to do this but if you’re not tech savvy then you can always visit each individual company and ask them to lay out the policy in front of you; this means you can take them away and look at them in your own time.
Don’t wait to purchase life insurance; take out a policy when you’re young and healthy. This not only means that you have longer to build up a big sum for your family but your premiums will also be lower. Also companies have shown that the majority of claims are made by people in their 30s and 40s.
If you’re planning on taking out a long term policy then you should definitely agree to level payments. You will be given the choice between level and stepped payments when you enquire. Stepped payments mean that they gradually get larger as you get older; these are beneficial if you have a fixed term policy of just a few years. Level payments mean that you pay slightly more when you’re younger but as you get older – and therefore you become more of a ‘risk’ – your payments won’t inflate.
Your income is hugely important to you and your family and it will become even more important when you’re gone. A lot of people completely forget about this when they take out life insurance but if you left your family with nothing then it could mean big trouble for your family. If you take out income protection it not only means that your family will be able to carry on living normally when you’ve gone but it also means that if you become injured or ill and are unable to work then you will also receive 75% of your income.
You may have to consider the way that you live in order to get the best premiums. People who smoke will have much higher monthly payments compared to non-smokers, because they are seen as a higher risk in the long run.
Jason Davies writes about an online life insurance company discussing where to get a lower premium.