There are many reasons as to why you may have decided now is the right time to cover yourself with a life insurance policy. Perhaps you are in the process of buying a house and it’s required that you have one in order to get a mortgage, or maybe your family is expanding and you want to make sure that those nearest and dearest to you are financially protected in the unfortunate event of your death. Bear in mind that health and age are some of the biggest factors when it comes to life insurance policy premiums, so it’s always best to get your insurance when you are young and healthy. Finding the right life insurance policy for you can be confusing, so we’ve put together some top tips to help you make the right choice.
Do: Shop Around:
Don’t go straight for a life insurance policy simply because you’ve used a certain insurance company in the past for something else, or they’ve been recommended to you. While reviews and recommendations can go a long way when it comes finding the right policy for you, it’s a wise idea to shop around using sites like Insurance Geek to find the best life insurance companies on offer when it comes to meeting your needs.
Do: Make Sure Everything’s Covered:
When choosing your life insurance policy, think about everything that your family would need to pay with it. Make sure that your main debts and outgoings are covered, including any mortgage payments and payments to outstanding loans and credit card debts.
Do: Regularly Review:
Once you’ve found a life insurance policy that’s a good fit for you, it’s important to regularly review it and make any changes where applicable. Life changes such as the birth of a child, an increase in your debt, or a change in occupation can affect your life insurance premium.
Don’t: Accept the Rate Offered by Your Mortgage Lender:
You may be required to get life insurance to get a mortgage if your family rely on your income to make repayments. However, mortgage lenders tend to offer overinflated prices, so it’s worth shopping around to get yours separately and get the best price you can.
Don’t: Forget to Think About Future Costs:
When you are calculating the amount of life insurance you will need, don’t forget to think about any future costs, such as for home improvement, your children’s school fees and future college tuition payments. However, it’s a good idea to sit down and do the math carefully, as overestimating can lead to unnecessarily higher premiums.
Don’t: Get Joint Life Insurance:
It used to be much cheaper to take out a joint life insurance policy with your partner or spouse, but in many cases, this is no longer true. It’s worth looking into getting two separate policies. It is often cheaper and means that if one policyholder dies, the other is able to keep their policy.
For many people, getting life insurance is an important step to ensuring that their family is protected and cared for in the event of their death, so keep these tips in mind to find the right policy for you.