What should I look for in a life insurance policy?
What you look for in a life insurance policy depends entirely on your personal situation. There are many different life insurance policies available to choose from and it is vital that you choose the right one before you commit otherwise you could be left with a policy that is of no use to you whatsoever. Finding which policy is right for you is a slow process but it really is worth doing all the research that you can – you could save yourself many thousands of pounds even in a short amount of time.
In the very broadest of terms, there are two types of life insurance policy. Term life insurance policies cover you for a fixed term and if you die during this term your beneficiaries will receive a pay out. However if the term ends before you die you won’t receive any pay out at all. A whole life insurance policy will probably cost you much more in the long run but the difference is that your beneficiaries are guaranteed to receive a pay out upon your death. In most cases, the whole purpose of a life insurance policy is to protect those who you leave behind, which means that whole life insurance policies are often the best option. However they are also much more expensive than a term life insurance policy and if a whole life insurance is the best option for you it basically boils down to whether you can afford the monthly premiums for the rest of your life (or definitely up to your retirement).
Of course one of the most important aspects of a life insurance policy is the cost. You can easily find out how a particular insurance company fares in comparison to another by using a price comparison website.
Life insurance policies are incredibly intricate and therefore there is not enough space to go into all the details of what you should look for in a policy here; however there are a few things which you might like to consider. One of the most common additions to a life insurance policy is a critical illness cover plan. This will provide you with a pay out should you be diagnosed with a critical illness, a feature that is particularly useful if your illness means that you have to take time off work which could result in financial problems particularly if you have financial commitments such as a mortgage.
Another common type of policy is a mortgage protection policy which will protect your family’s home in the event of your death. If you are the sole breadwinner in your family they could be left in a difficult situation if you die. How might they afford the mortgage repayments? A mortgage protection policy will guarantee that the mortgage on your house will be paid off, easing the level of debt on your family.
Disclaimer: The information contained on this page is not intended, nor should it be construed as providing any form of financial advice or guidance as to which insurance product/policy is right for you. If you are unsure as to which product meets your requirements/needs you should always seek advice from an Insurance Professional.