Taking out life insurance is an important part of your fiscal planning. Similar to when you make any financial plan, there are a few points that should be considered if you are planning to take out life insurance.
Speak to an independent broker
Instead of limiting your discussions about taking out life insurance to one company, independent life insurance brokers have access to an abundance of products. As brokers can offer considerably more products than a single insurance company can provide, it is sensible to talk to a broker so that you are aware of the different life insurance products available.
Do not be afraid to ask questions
When talking to a life insurance advisor or broker, do not be afraid to speak up and ask questions. For example, it is far better to know now whether or not you can cancel a policy rather than when you have signed on the dotted line.
Term insurance is the least expensive and most widely used life cover policy. Applicants can choose how long they want the period – term – to last. The insurer will then pay out a lump sum when the policy holder dies.
Avoid joint policies
It is not uncommon for couples to take out joint policies. However, it is important to remember that joint policies typically only pay out once, after which the partner of the deceased would be left uninsured.
Asides taking out separate policies, you may want to consider writing your policies “in trust”. Writing policies “in trust” enables policyholders to designate certain people to be the receivers of your money so that it is not solely distributed by your will.
Not only is writing insurance policies “in trust” fairly straightforward and costs nothing, but it also means that beneficiaries receive the payout quicker and the money will not be subject to inheritance tax.
Take advantage of 30-day free trials
Many life insurance products offer a 30-day free trial to clients. It is a good idea to use this service to take a good look at your policy and ensure that you understand it fully and are happy with it. If you are not happy with your life insurance policy within these 30 days, you will be able to cancel it and get your premium back.
This is a convenient feature of many life insurance products and is something to look out for when you are deciding what life insurance is best for you.
Financial expert Jenny Wade wrote this article for www.lifebroker.co.uk providers of Life Insurance Quote Online