Why you should shop around to find your life insurance
Life Insurance is a very competitive industry. Unfortunately many buyers do not realise this and act as if there are very few providers, when they can usually get better terms for less money if they are prepared to shop around for their life insurance. Many people will first look to their bank or some other financial provider with who they already have a relationship. Although this can be a way of saving money if there is a loyalty discount or some sort of package fee. However in most cases this is an expensive option for many people as banks tend to
Why you should discuss life insurance with your family
Life insurance is a hard subject to discuss with members of the family. It is like writing a will; it is an admission of mortality. However it is important to do this. The first reason is to make sure that it relieves any financial worries should the insured person die. It is hard enough for most people to deal with the emotional distress when a loved one dies; it is also hard to deal with the financial dimension at the same time. Life insurance gives a breathing space to arrange a funeral and not to worry about a mortgage. Another reason
What is the difference between permanent and term life insurance?
Life insurance comes in two main flavours, permanent and term life insurance. It is important to know the difference when buying a life insurance policy. The difference is one of timing. Permanent life insurance lasts throughout a person’s life and is much an investment as an insurance product, whereas term life insurance is a more standard form of insurance which covers a person over a certain set period of time, or a term. Permanent life insurance comes with guaranteed death benefits which pay out regardless of what happens to the health of the insured person after the insurance policy has been
Can people who have survived serious illnesses get life insurance?
Many people who have survived serious illnesses find it hard to get further life insurance. There are still some ways to get this insurance. If a person has gone through a serious illness such as cancer, heart disease or diabetes then they can find life insurance very hard to obtain whether or not that disease was in itself life threatening. This is not because the life insurance companies are being cruel, but because a person who has recently survived a major illness is far more likely to die. This is highly unfortunate, because people who have gone through these diseases realise
Why medical examinations are often insisted upon by life insurance companies
Life insurance is essentially a bet by a life insurance company that the person who they are insuring is going to live for the term of the insurance. For this reason it is necessary to accurately judge the risk that the person will still be alive at the end of the term. When the most important aspect of whether a person will still be alive is health then it is likely that life insurance companies will become more interested in health. One way in which health is assessed is through a number of statistical measures that are found out through application
Why it’s important to get in shape for Life Insurance
Life insurance is based on how likely a person is going to die over a period of time. This is judged by actuaries using a number of factors which they then average through actuary statistics and work out the probability that the person will die within the time that they are trying to be insured. Many of the things on the actuary tables are things that a person can do very little about – for example age and sex are two very important factors when judging whether a person is a good life insurance risk. There are also previous health
Life insurance sold by mortgage providers
Life insurance is often sold by mortgage providers, although it can be necessary, standalone life insurance is almost always a better financial option. Mortgage based life insurance is designed to protect the lender. If the person dies then the life insurance will pay out to the mortgage provider. This is a reasonable precaution for the mortgage lender to take, as a person who takes out a mortgage is always a risk and this is the way to minimise the risk. Many mortgage providers will insist on life insurance being taken out when there is a small deposit, usually when the deposit
Do you need life insurance if you don’t have young children?
Life insurance is a reasonably obvious thing to have when there are young children. But if there are no young children, or if the children have grown up, life insurance does not seem so obvious. There are still reasons to get life insurance. Firstly the children may still need support into their early careers. It is very easy to underestimate how long children need support, particularly if they are being encouraged to do things, such as going to university or taking professional training, which are going to lower earning power in the short term. The mortgage for the main house and other