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The importance of life insurance

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For many of us thoughts on obtaining life insurance don’t typically start until we are growing our family, or perhaps applying to buy our first home. There is NEVER a better time to get a quote for life insurance than RIGHT NOW. Whatever your age! I personally feel that life insurance has never been more important than during the current climate.

As we reach different milestones in our life, and the precious family we gain grow and grow, it is all the more reason for us to protect them the best we can.

There is more to life insurance than just protecting financially against loss of life and I wanted to provide a little more information on life insurance, while discussing a company that can help you, whatever your requirements.

Life Insurance

This type of policy offers a fixed number term of years of cover, typically, should you die or become critically ill. If the worst were to happen to you during the term of your life insurance your partner or family would be supported financially.

This is a great reassurance that your family won’t have to leave their home, or be left stressed and worrying about how to pay the bills.

You can purchase term policies, such as 25 years of cover, or you can even buy whole of life assurance which offers a guaranteed fix sum upon death.

Term policies are typically a fixed price which is great. My husband has a life insurance policy that costs around £10 a month and that price is fixed for the 25 year duration of his policy.

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Income protection

This type of insurance works a little differently, as it is designed to offer you financial protection if you are unable to work and earn your usual income.

I feel that this is one of the most valuable forms of insurance you can have, especially if you family rely on your income. Most of our families do I’m sure!

Should you become extremely ill, disabled or injured, income protection insurance will replace at least part of your income.

If your illness or injury turns out to be longer term, this type of insurance continues to pay out either until you begin working again, or if required until you retire.

Income protection covers the majority of illnesses that could render you unable to work, short or long term. This can provide the security that if an unfortunate situation were to arise, you can still pay the bills and provide for your family.

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How to find life insurance that is perfect for you

When you’re looking for a new life insurance product it can feel a little daunting at times, particularly if you’re a little older or have some existing health conditions as I do.

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Things to remember when applying for life insurance:

Ensure that you’re being honest in your application. Mention all past physical and mental health conditions, when asked.

Think carefully about the money that you want to leave for your family. Are you looking just to cover a mortgage or are you looking to leave additional financial stability? Avoid over-insuring yourself to keep costs lower.

With term life insurance the younger you are when purchasing it the better. This helps keep costs low, as you’ll be seen as low risk for the duration of the term if you’re young when the policy starts.

Consider joint cover with your spouse. This can be considerably cheaper than two policies as often this type of policy is designed just to pay out one time if one of you dies.

Look for guaranteed premiums. Paying a fixed amount for the entire term of your life insurance will help you budget and be sure that you can afford the premiums.

If appropriate consider a decreasing term policy. This type of policy offers a payout rate that decreases each year. A policy such as this can work really well if you’re looking to cover a mortgage that is decreasing in value each year.

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