Whether you’re a new mum, have a new partner or are simply thinking about the future, life insurance is likely something on your list. This gives your family a lump sum payment in the event of your death, and can be great for those needing to pay off your mortgage, settle other debts and pay for funeral costs. However, before you go out and buy a life insurance policy, you need to know the answers to a few questions.
What’s the Difference Between Policies?
There are different types of life insurance policies available. Whole and term insurance are the most common options, but there are a few others. Make sure you do your research into the different options, and understand the terms, conditions and costs. Find the one that is going to suit your family the most.
The Length of the Policy Term
How long should you get your life insurance for? This is usually in the event of term insurance, but you need to think about it for others. The answer will depend on your age and other factors. If you are very young, you may want a longer policy to cover possibilities further down the line. However, if you’re getting older, a shorter term is usually expected since there are not as many years left.
What Amount Should You Take It For?
You need to find out more about the total payment at the end of your life. This will depend on policy and amount that you pay in. For term insurance, you decide on the amount and that determines the amount that you pay each month. For whole insurance, the amount paid out will depend on the total amount that you have paid in but may not always be the same amount. You want to think about the costs your family will have to pay in the event of your death.
Which Company Is Best?
This really depends on the type of insurance and the conditions attached to the policies. Some companies will only take people from a certain age, while others favour younger people. It is important to discuss you needs with various life insurance companies and find out which one could offer you the best deal for your money and your family. You will also need to check the conditions in full to see if there are any types of deaths restricted on the policy.
Are Medical Tests Required
There is usually a medical side to the insurance policies, but that does not mean tests will be required. Some companies ask to see your medical records, while others have forms you need to fill in to declare anything and everything. It is important to be a thorough as possible, as leaving one detail out could prevent a payment being made. Some companies do require a medical test to help determine the full amount that you will pay and whether you are even eligible for certain types of life cover.