Compare Life Insurance

Summary
It is always wise to know exactly what you want in the way of cover as only you understand your own situation.  We clarify what you need to know and how to carry on it once you have it.

Ian Marsh, a Director of investments at Cambridge based financial adviser Jobson Janes Financial Services, warns that it is very irresponsible of people not to have Life Assurance and/or Critical Illness Cover as he insists that life has 2 main threats – either being alive too long and dying too soon. 

“Its very important to have some insurance cover in place – particularly if you have got small childern,” he states. “In these uncertain times you need to  asemble your own little stronghold because nobody else is can do it for you.”

Greg Suttcliffe at Direct Line says now is the right time to invest in such insurances as there are some very reasonable premiums about owing to the intense vying for business within the insurance market. “The price of life cover has come down – reduced by about 42% in 4 years. It has never been as cheap,” he adds. “The critical illness market paid out on 83 per cent of claims in 2004 – up from 81 per cent  the during the last year.”

Check what insurance cover you have before you take out more.  Do already own any investment plans or does your company pension fund give you any cover?

The simplest way to assess how much life cover you need is to work out how much you would want to provide the same level of living over a year and then multiply it by twenty years.  The minimum amount needed should clear all outstanding debts and and leave a decent amount for your dependants.

Obtaining the best deal

When deciding on your life insurance policy it is very necessary to read the guide that most a lot of insurance companies have of the conditions and illnesses that they deal with. It will catalog everything and should be strsightforward and simple to understand.  You will also want to look at the documentation of the crutial features of the policy which will incorporate all benefits and exclusions.

When people take on the responsibility of a home loan they are usually counselled to take out critical illness insurance cover but should research the market and not just take the first policy suggested.

If you start paying these premiums when you are young they are noticeably cheaper, very different to leaving it until you are older, when cover increases quite markedly.

Insurance payments can also be reduced by quitting smoking cigarettes.  Fiona Jackson, manager of protection insurance at Co-operative Insurance says “Giving up smoking can save people a significant amount of money as well as hopefully bringing a longer and better quality of life.”

If you stop smoking you can knock as much as a 1 3rd off life, critical illness cover and income protection insurance payments because the evidence that we now have shows that smoking can trigger serious illness and aggravates any other existing health conditions.

You may have to change your policy if your circumstances alter.

Under no circumstances feel that once you have purchased your insurance policy that you can just keep on with your life and dismiss it. At all times be very mindful of the insurance cover you have and be sure that, if for any reason your circumstances change, or, is going to alter your insurance must have capacity for these amendments.  Possible examples are changing your job, or do you intend to have more children; on a regular basis consider anything that may increase your costs to live and will need to to be covered if you cannot work.