Life insurance is a very satisfying purchase, as you know it will take care of your family in your absence. Here are a few pointers when it comes to determining your policy.
Be honest
When evaluating you, your insurance provider will need accurate information; otherwise, you could invalidate your policy. So, it will not save any money by not conveying important information. For example, if you smoke and you tell your insurance company that you are a nonsmoker, if the worst happens, your family could lose your payout.
Plan for the future
Life insurance will take care of your loved ones after you are gone. Therefore, it’s a good idea to plan for that scenario. The more detail you go into, the more effectively you will be able to care for your family should the worst happen.
Factor in any debts you may have
It’s important to evaluate your outgoings and income. Take into consideration the remaining balance of your mortgage, and remember that this reduces every year, so that will be factored in by your insurer. It could be that you are saving to put your son or daughter through university to save them from getting into debt in the future.
Place your policy in a trust
This will mean your family will not be liable for inheritance tax when it’s time for the insurance company to make a payout. It will not cost you anything to do this, and your broker will guide you through every step of this simple process.
Consider the term of your policy
When taking out your insurance policy, you will be faced with a choice: do you want a whole-life policy that covers you for your entire life or for a fixed period? Some people may choose a fixed period term while they have a mortgage or until the family grows up and moves out. Knowing they are not dependents anymore; they choose to invest in their retirement instead.
Check out the insurance company
When your broker finds you a great deal that you know will suit your financial needs and take care of your family, do not be afraid to ask as many questions as you like to check the reputation of that company.
Check your documents before you sign
Insurance is about the differing details that make each person’s circumstances unique. And it’s important to discuss your individual needs with your broker. Then, when your paperwork arrives in your inbox or through the post check that all is as you requested before signing. And remember to get in touch with your broker if there is something you don’t understand. After all, that is what they are there for.
Remember to update your policy
Your life changes and it’s vital that you inform your insurer of these changes. If you have changed your occupation, got married, or extended the house, you might need more money to repay a loan you have taken out in the event of your death.
Get the right guidance
With the right guidance, you are more than halfway to getting the right policy for you. Allow your broker to do the hard work for you. Then you can sleep soundly at night, knowing you can provide for your family even if you are not there.
Get in touch today to talk to one of our experts about finding your life insurance policy.