Guide To Getting The Most Out Of Your Life Insurance Policy
With so many life insurance companies offering so many variants on the basic life insurance policy there are some general dos and don’ts you should always bear in mind when looking for a policy that best suits your needs.
Life Insurance Policy Dos
- No life insurance policy should be set in stone – as your renewal date approaches shop around to see if you can get a better deal. And remember – if your circumstances should ever change you must notify your insurance provider.
- Ensure you have the appropriate level of coverage for all your key outgoings and debts e.g. mortgages and credit card bills.
- Avoid inheritance tax on any pay-outs made against your policy by putting your life assurance policy in trust.
- Plan ahead and get your life insurance policy in place when you are young. Usually the older you get the more expensive it is to take out a new life insurance policy.
Life Insurance Policy Don’ts
- When you take out a mortgage you will need to have life insurance in place if it is your income that pays the mortgage. However, life insurance policies offered by mortgage lenders are usually very pricy so shop around – you are under no obligation to take out your life insurance policy with your mortgage lender.
- Look to the future when you calculate how much life insurance cover you need, don’t just base it on the here and now. Ensure you take into account costs such as your children’s education. However – don’t overestimate as this will drive up your premiums.
- Historically it was often cheaper to take out joint life insurance policies with your partner, however things have moved on and now it often cheaper to take out two individual policies. It also means that if one of you dies the other can continue with their policy as is.