Summary
It is always wise to be sure exactly what you are looking for in the way of cover as only you understand your personal circumstances. We explain what you need to be aware of and how to maintain it after you have it.
Andrew Merricks, head of investments at Lancaster-based financial adviser Peel Townsend Financial Services, counsels that it is very shortsighted of people not to have Life Assurance and/or Critical Illness Insurance as he maintains that life has two major threats – either being alive too long and dying too soon. “Its absolutely essential to have some cover in place – particularly if youve got a young family,” he states. “These days you need to build your own little welfare state because no one else is can do it for you.”
Greg Suttcliffe at Bestdeal says now is the right time to buy such insurances as there are many very cheap premiums about owing to the intense competition for business within the industry. “The price of life insurance has come down – reduced by about forty five per cent in three years. It has never been as cheap,” he adds. “The critical illness industry paid out on 85% of claims in 2007 – up from 79 per cent the previous year.”
Be aware of what insurance cover you have before you take out more. Do you have any investment policies or does your company pension fund give you any cover?
The best way to assess how much cover you need is to calculate how much you would need to have the same standard of living over a year and then times it by twenty five years. The minimum amount needed should pay off any outstanding debt and provide a lump sum for all your dependants.
Making sure you get the best deal
When making a decision on your insurance cover it is very important to read the manual that many insurance companies have of the illnesses and conditions that they deal with. It will list everything and should be clear-cut and easy to grasp. You will also want to see the documentation of the significant facts of the cover which will contain all benefits and exclusions.
When a person takes on the responsibility of a home loan they are normally advised to take out critical illness insurance cover but should research the market and not just take the first insurance cover suggested.
If you start paying these insurances when you are younger they are significantly cheaper, distinctly different to leaving it until you are older, when insurances goes up quite substantially.
Insurance premiums can also be reduced by giving up smoking. Alison Hines, manager of protection at AxA Insurance states ” as well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”
If you stop smoking you can knock as much as a third off life, critical illness cover and income protection insurance premiums because the facts that we now have shows that smoking can trigger serious illness and aggravates any other existing medical conditions.
If your circumstances change you may have to alter your policy.
Under no circumstances feel that once you have purchased your policy that you can just continue with your life and forget about it. Always be very mindful of the cover you have and make certain that, should your situation change, or, are about to change your insurance must accommodate these changes. Clear examples are changing your job, or do you intend to have more children; frequently think about everything that may raise your living costs and will need to to be covered if you are taken ill and cannot work.
What Insurance Do You Need To Protct Your Family? Part 2
Summary
It is always wise to be sure exactly what you are looking for in the way of cover as only you understand your personal circumstances. We explain what you need to be aware of and how to maintain it after you have it.
Andrew Merricks, head of investments at Lancaster-based financial adviser Peel Townsend Financial Services, counsels that it is very shortsighted of people not to have Life Assurance and/or Critical Illness Insurance as he maintains that life has two major threats – either being alive too long and dying too soon. “Its absolutely essential to have some cover in place – particularly if youve got a young family,” he states. “These days you need to build your own little welfare state because no one else is can do it for you.”
Greg Suttcliffe at Bestdeal says now is the right time to buy such insurances as there are many very cheap premiums about owing to the intense competition for business within the industry. “The price of life insurance has come down – reduced by about forty five per cent in three years. It has never been as cheap,” he adds. “The critical illness industry paid out on 85% of claims in 2007 – up from 79 per cent the previous year.”
Be aware of what insurance cover you have before you take out more. Do you have any investment policies or does your company pension fund give you any cover?
The best way to assess how much cover you need is to calculate how much you would need to have the same standard of living over a year and then times it by twenty five years. The minimum amount needed should pay off any outstanding debt and provide a lump sum for all your dependants.
Making sure you get the best deal
When making a decision on your insurance cover it is very important to read the manual that many insurance companies have of the illnesses and conditions that they deal with. It will list everything and should be clear-cut and easy to grasp. You will also want to see the documentation of the significant facts of the cover which will contain all benefits and exclusions.
When a person takes on the responsibility of a home loan they are normally advised to take out critical illness insurance cover but should research the market and not just take the first insurance cover suggested.
If you start paying these insurances when you are younger they are significantly cheaper, distinctly different to leaving it until you are older, when insurances goes up quite substantially.
Insurance premiums can also be reduced by giving up smoking. Alison Hines, manager of protection at AxA Insurance states ” as well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”
If you stop smoking you can knock as much as a third off life, critical illness cover and income protection insurance premiums because the facts that we now have shows that smoking can trigger serious illness and aggravates any other existing medical conditions.
If your circumstances change you may have to alter your policy.
Under no circumstances feel that once you have purchased your policy that you can just continue with your life and forget about it. Always be very mindful of the cover you have and make certain that, should your situation change, or, are about to change your insurance must accommodate these changes. Clear examples are changing your job, or do you intend to have more children; frequently think about everything that may raise your living costs and will need to to be covered if you are taken ill and cannot work.
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