TOP TIPS FOR LIFE INSURANCE
It’s important to make sure you have the right life insurance in place, but a recent survey has revealed that a massive 73% of people aren’t sure they have suitable protection cover
Here are a few tips to consider for your life insurance to ensure you’re not one of them:
Don’t delay Life insurance is calculated on risk. For the same policy term and level of cover, a younger, healthier person will pay less than an older person who has a medical condition. Therefore, as you get older, life insurance becomes more expensive.
Unless you change your policy, premiums are normally fixed for the policy term. The longer you leave it before taking out cover, the more you'll pay.
Stop smoking Smokers pay more for life insurance than non-smokers, so kicking the habit can be good for your pocket as well as your health. You will normally need to have given up all nicotine products for at least 12 months to qualify for non-smoker rates.
Regular reviews Reviewing your life insurance to ensure it remains at a sufficient level may be something that you mean to do, but never quite get around to. Don’t just hope for the best and assume your existing cover will suffice, instead try to get into the habit of regularly reviewing your cover and check the details so that you don’t find yourself underinsured and in a vulnerable position.
For example, if you move up the property ladder and your mortgage increases, you should remember to alter your life insurance to cover the larger amount of borrowing. And if you enter into a marriage or a civil partnership with your partner, or have children, you should check that your existing insurance provides funds to meet your financial commitments, should anything happen to either of you.
Check your workplace benefits Some employers will offer life insurance as part of a benefits package, but others won’t. Don’t assume that you are automatically covered if you change jobs, as it may now be up to you to insure your life.
Sidestep tax Life insurance proceeds are free of Income Tax and Capital Gains Tax, but your family could be liable for Inheritance Tax (currently 40%) on the payout from a life insurance policy. It is normally possible to avoid Inheritance Tax by writing your life insurance under a suitable trust.
Take advice Our advisers are experts at finding the right life insurance for your individual circumstances. We can review any cover you’ve already got in place, help you update your plans to suit your current circumstances and recommend the most suitable products and level of cover. We can also arrange for policies to be written in trust. Contact us to see how we can help
As with all insurance policies, conditions and exclusions will apply