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Life
Insurance Guide
What is it?
Who should have it?
How
it works
Tips on Buying Life
Insurance Get
a quote
What
is it? There
are various kinds of life insurance. The idea behind each one is the same. If
you die during the term of the policy your dependents will get a sum of money
in compensation. This
can act as a replacement for your earning power.
Who
should have Life Insurance? Life
insurance is only really necessary if you have children
or others who are very reliant on you. If
you're single you probably don't really need it. Why bother? However
, perhaps you're the only earning child of parents whose pension arrangements
are a bit weak, and who'll need help in later life with nursing home fees. If
so then it sounds like a good idea - if you can afford it. The
rule of thumb here is unless
you've got dependents, or another good reason to have it, you're probably best
off spending your money on yourself. Perhaps on a pension or permenant
health insurance.
If you haven't got anyone who needs you to look after them then, conversely, you
probably don't have anyone to look after you. So look after yourself.
How
Life Insurance Works
You
decide on how much you want to be insured for - the "sum insured". You
also decide how long you want to be insured for - "the term".
With
most life insurance policies - "level term" - The sum insured
stays the same (ie level) throughout the term. If
you die during the specified term then the sum insured is paid out. In
rare instances the insurer may dispute the payment, for example if you were taking
part in a dangerous sport which was specifically excluded from the policy. You
need to research this. Read the samll print and don't be afraid to "ask
stupid questions". Critical
Illness insurance can be added to most policies. Terminal
Illness benefit is normally included on most policies. This usually means if there's
a diagnosis of terminal illness you can get the money paid before you ide
If you survive the term and the sum insured has not become payable then - certainly
with level term assurance - nothing would be paid out.
Tips
on Buying Life Insurance
The older you are the more expensive life insurance gets. To
avoid getting hijacked by higher premiums as you get older you probably need level
term assurance - which fixes how much you pay at the outset of the policy
The
problem with this is that the amount paid out to your family decreases with
inflation. However you may be able to get a policy with an inflation-proof
payout scheme if you do some research).
Get
a Life Insurance Quote now
There
are literally hundreds of insurance brokers out there waiting to give you a quote.
The problem is they vary greatly in price and quality.
The best thing
is to have one recommended by word of mouth. However
if you can't find one this way, we've done some researching and have identified
the one we believe offers the best value. Go
to the best quote
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