Top Life Insurance Tips

Building up your savings is not something that happens overnight, it takes time. Sudden death can mean that your family’s savings can be spent almost in an instant. It therefore makes a lot of sense to put safety nets in place to protect your family’s finances.

The best way to decide whether you actually need life insurance is for you to imagine what would happen to your family, if your income was no longer there as the worst had happened to you.

Here are top 9 tips to take into account when buying life insurance.

1.    Buy enough cover. Your mortgage will probably be your biggest debt so you need to cover that. Additionally to that you should provide at least £150,000 for every young child you have. This will increase significantly if you want to put your children through private schooling.

2.    Watch out for terminal illness cover on life plans. This will pay out the sum assured if you are diagnosed with a terminal illness and have less than 12 months to live. All the policies offered by Click automatically include terminal illness cover.

3.    Consider two single life policies instead of one joint life policy which can only payout once on the first claim. Two single life policies effectively provide double the cover for couples. A joint life policy will not leave the surviving partner with any cover later in life. With their own single policy they are still insured.

4.     Ask your insurer to write your policy in Trust. Under current Inheritance Tax Legislation, for every £100,000 of life assurance you will have a potential £40,000 tax bill if your estate exceeds the current inheritance tax threshold. Writing your policy in trust only requires you to complete one extra form and the insurance company will do all the rest for you. Your insurer will also provide this service free of charge.

5.     The sixth most common cause of a claim under the critical illness cover, relates to children. (Critical Illness cover is commonly added as an optional extra to a life insurance policy. This cover can also be bought as a stand alone policy). If you are going to add critical illness cover, make sure the policy also includes cover for your children. Most critical illness provisions automatically include £20,000 cover for each of your children. Check it out.

6.    Critical illness policies will only pay out for the serious medical conditions listed on the policy. So always carefully read the policy documents carefully and understand what’s covered before you buy.

7.    Your sum assured should increase as your mortgage or family does. So if you have what’s called a “guaranteed insurability option” included on your policy, use it! With this option, you have the right to increase your cover at certain stages in life, without any further underwriting. This means that if your health has deteriorated since you first bought the policy, you can still increase your cover. This comes in very useful when for example, you get married, you buy a new home or a child is born.

8.    Don’t over-insure yourself. Take into account how much cover you already have. Remember, many employers include life insurance cover within their employee benefit packages. They may also income protection and critical illness insurance. Life insurance may be called death-in-service benefit, while income protection can be called long-term disability benefit or permanent health insurance. Check out you contract of employment.

9.    When you complete your life insurance application form make sure you disclose everything remotely relevant. If you are in doubt, especially if it is medically related, tell your insurer. If you conveniently “forget” to mention even a minor health issue it could have devastating consequences later on. If there is a claim, the insurance company always makes extensive inquiries to verify the claim and this could turn up significant problems due to non-disclosure. Whether it is smoking habits, a bad back or occasional pins and needles, make sure your insurers know.

Life Insurance Can Be a Lot More Complicated Than You Think!

Life insurance? Are we back on that topic again? Yes, we know that we’re going a little raincloud here but we have to keep up on the topic because it’s really that important. If you’re not thinking about life insurance right now, we don’t blame you. it’s a tough subject to think about, and it’s even tougher to take out a policy. It’s a confirmation of your own mortality, the realization that you’re not going to actually last forever as we often assume we will. When everything is going well, it can feel as if we’ll live forever, but nobody has done that yet. There’s no immortality clause in the great life contract, so you have to make sure that there’s a way for you to always be able to provide for the family that you love most.

Insurance is a tricky product, a system of risk management rules and regulations that have to count for a lot of details that we end up wishing didn’t have to be accounted for. We want to always have insurance there when we need it, but we really hate paying for it. That’s the trouble with insurance, but that’s something that we have to get used to having eventually.

Yet all is not well once you get your policy and start making the payments. Miss a payment, and you’ll have the policy cancelled — with no refunds, of course. If you end up trying to reinstate the policy, you could go through additional testing. After all, time has definitely changed, so you’re going to be open to having to get medical testing. If you have developed an illness in the time that the policy lapsed and was later reinstated, you may be denied the policy after all. Or you might have a waiting period that you need to go through before the policy becomes active. There are a lot of variables here, so you will need to run the specifics by the insurance company in particular.

Be aware that the insurance company won’t really work hard to find your heirs — unless you make that information clear to them. Not only can you leave behind contact information for your heirs, but you will also be able to get your heirs to do the same. Your insurance agent wants to make sure that every policy is serviced properly, and giving them the information they need in order to handle business will really play a role in whether or not your heirs receive the money that you want them to. Since you won’t be around to actually control the insurance company on behalf of your heirs, so you will need to really make sure that everything really is okay, to the best of your ability, before you die.

As a side note, this is another reason why having a good will makes sense. Keeping your will updated will give everyone the right idea about what you actually wanted to leave behind to your heirs aside from just the insurance money.

Moving back to the world of insurance, did you know that it’s a great tax shelter? It’s true — but your insurance company usually won’t tell you this. The benefits of a life insurance policy are tax-free, and the proceeds go to your loved ones tax-free as well. So if you’re thinking about ways to shield some of the money you have from the IRS< a life insurance policy is a good way to do it. However, you might want to make a move quickly — there have been talks that tax reform could block these shelters from people very fast!

Testing is also one of those around that people hate about life insurance, but the good news is that you don’t always have to deal with it. It’s all about the amount of coverage that you request and the type of coverage that you request. Term life insurance is very basic, which means that you can actually get away with not having too much information collected. However, you’re not going to get as much coverage at all — you’ll be very limited. In addition, if you’re over the age of 65, you’re not going to have this option — it’s pretty much all about the testing.

Don’t forget to actually comparison shop when you’re thinking about coverage. it’s tempting to think that you have to be in a hurry, but you really don’t. As much as we all would like you to get insurance as soon as possible — but you really don’t want to end up rushing and getting into a policy that really doesn’t truly meet all of your needs.

So now is the perfect time is make sure that you get things together — start today!

Sitting Your Family Down For a Discussion About Life Insurance

If there’s one subject that your family really doesn’t want to talk about, it would definitely have to be life insurance. After all, why would your family want to talk about something that centers around a time where you will no longer be alive to take care of them? No matter how painful the subject of life insurance is to your family, you do need to discuss it as well as the rest of the estate planning process. It’s better to risk a little discomfort now than to avoid the subject and end up not preparing your family for a life where you won’t be in their lives. A lot of people think that it’s better to spare their family’s feelings, but they just end up causing a lot of grief in the long run when their family tries to process a life without them.

When you’re ready to sit down and bring the family together, there are a few things that you’ll want to talk about. The first part is trying to figure out what type of life insurance coverage that you want to get. Generally speaking, we get life insurance to make sure that we can cover our families in case they come to a point where they have to live life without us and it’s a sensitive time. This is usually when you’re trying to raise a few kids, because you don’t want to leave your spouse without the money to raise the children and handle the expenses. If you’re the primary income earner, then this is an even more serious problem. Even if you weren’t, your role in the family’s life can’t be ignored. You might be the primary caretaker, which means that in the event of your death the family would be without someone to watch over the children. A lot of people think life insurance is only to cover the person that brings in the income, but it’s really anyone that has an instrumental role in taking care of the family.

Term life insurance is a great choice for families facing the possibility of losing a loved one, because it covers the period in a family where things are at their most sensitive. The longest coverage period for a term life insurance policy is 20 years, which is plenty of time to raise your children and make sure that they have everything that they need to enter adulthood properly.

No matter what type of life insurance you’re thinking about, you can actually find it online. Unless you need a multi-million dollar policy, you can usually conduct the entire process online without even contacting anyone. The only part that has to be online is the medical exam. In fact, for some policies, you don’t even need to handle a medical exam — you just answer a few questions. If your health doesn’t fall into a dangerous category from the health survey, you can even skip the medical exam. It just depends on the company. Naturally, if there’s anything that you’re unsure about, the time is today to get your questions answered as soon as you can!

Life insurance essential for those with young families

To many, life insurance is a necessity when taking out a mortgage, often because of the fact it’s a requirement to taking out many mortgages.

Unfortunately because of this the benefits of life insurance often get forgotten, and a really important insurance product doesn’t get the credit it deserves.

Life insurance, like critical illness cover looks after your financial responsibilities if you are unable to do so, through your death. Financial responsibilities include your mortgage, but for those who don’t already own a home, there are still substantial financial responsibilities to think about, especially for those with young families.

Young children cost money, and as they grown up they depend upon their parents for financial support to pay for clothes, hobbies, activities and even school trips, all of which can really benefit their childhood.

They will also need a roof over their head, and even though council housing can provide for those unable to afford to do so themselves, the upheaval to council housing can be upsetting and give your children a lower quality of growing up.

Life insurance gives a family a lifeline if one of their earners dies, by providing a financial lump sum that will give the family the support they need to raise the children as they would have had you been around, and to prevent them from having to move home.

Even those later in life who have children who have moved on and become financially self sufficient can benefit from life insurance, as the pension age is moving further and further away, and less and less people have enough money saved for their retirement to live in real comfort in their later life.

Life insurance can ensure your other half will have enough money in retirement, should you die before the end of your life insurance term. There are many different types of life insurance quotes which can suit nearly everyone’s circumstances.

Life insurance is a really useful insurance policy, and can make a huge difference to a family after the loss of a loved one.

What Does Your Boss Know About Life Insurance That You Don’t

Getting life insurance is something that a lot of people don’t really want to think about, but it’s a reality that we all have to face eventually. No one really wants to think about the day that we aren’t here for our friends and family, but that day could come sooner than you think. After all, no one really knows the future. You always want to make sure that you’re not leaving behind any bills that could cause problems for your family — debt is a serious issue, after all.

If you’re looking to get life insurance, you might feel like you’ll never get a policy that really makes sense. However, the reality of the matter is that the life insurance policy of your dreams could be right under your nose — as long as you think about other sources to get it, of course.

One source that you might not think about is your boss. In fact, there are a lot of things that your boss knows about life insurance that you really don’t know. Even if you think that your boss doesn’t have the information that you’re looking for, you might be surprised at the resources that they have at their disposal. [Read more…]

Don’t Wait Until You’re Older to Get Life Insurance!

Is life insurance something that’s only for old people? Even if the question sounds silly to you, the reality is that many people actually feel this way in real life. They believe that it’s actually impossible to pick up good life insurance at a younger age, so they wait until an older age when things are beginning to get more serious in their lives — like building a family. Growing older tends to make you think about how short life really is, but that doesn’t mean that you should wait until you’re older to get life insurance.

If you really think about it, your younger days are actually the perfect time to really think about picking up life insurance. For example, if you know that you want to have a family, you should take out life insurance when you’re young so that your premiums will be low. If you choose term life insurance with a longer term, you can actually save money when compared to a whole life insurance policy that has a much larger premium. Even though you can borrow against a whole life insurance policy, it’s better to make sure that you will have a sizeable life insurance benefit for your family — whenever you have them.

If you have debts that you share with a family member, you may want to make sure that you take out a life insurance policy that will cover those debts. You are most likely a person that doesn’t want to burden someone else with your debts, so taking this into account is always a good thing.

You have a few more options for life insurance when you’re younger, because time is on your side. Remember that all insurance is about risk management. If you are someone that has risk factors for hereditary diseases within their family, you will need to make sure that you purchase life insurance at a younger age more than any other person. This is because at a younger age these factors don’t come into play. Remember that the insurance companies take your risk factors into play, and most diseases usually don’t arrive until you’re much older. If you wait too long to actually get life insurance, there are a few things that could happen. For starters, you could end up getting denied for life insurance completely, which would honestly be your worst case scenario. However, you might be able to get life insurance — depending on what’s actually going on. Even if a company denies you, you do have the right to appeal. It’s important to keep in mind that life insurance companies are still businesses, and businesses are out there to make as much money as possible. So when you know that you will want to get the best life insurance on your side, you could always offer to pay more for the privilege of having a policy. Some companies will go for this, and some will not — it’s really up to you to make that decision.

Overall, it’s just important to make sure that you buy life insurance right away, before it’s really too late — you don’t want to have to pay more than you have to in order to secure a policy, so why not just get started today?

Get Life Insurance Before It’s Too Late!

Life insurance is something that people often debate whether they need or not. Indeed, the common opinion is that you don’t really need life insurance, and that getting such a thing implies that you’re far too paranoid about the future. However, a different perspective is needed in order to understand just how important life insurance really is.

Indeed, getting great life insurance is something that should be a true requirement of life, especially if you’ve already built a family. When you bring other people into the fabric of your life, it goes without saying that you will naturally want to protect them from every angle. In the case of your untimely death, the last thing you want to risk is having your family plunged into debt and uncertainty. It’s easier than ever before to protect your family from the uncertainties of life. If you are the primary wage earner in the household, then it’s even more important to protect the income stream flowing into the house with a solid insurance policy.

Even when there are two people working, there should definitely be multiple insurance policies to cover both working people. In the case that both parties pass on at the same time, there should be money left over to raise the children to adulthood and ensure that the bills will be covered. Contrary to popular belief, there are still debts to be paid after you pass on. Indeed, if you’ve accumulated debt through your life and you happen to die, your estate and family will be responsible for that debt. While your family doesn’t have to directly pay it, they will not be able to touch your estate until all of your debts have been handled. When you bring a life insurance policy into the mix, you make this an easy process — the benefits from the policy cover all of the debts, and leave your family members with a small settlement to live off of and rebuild their lives. While it’s true that no amount of money in the world can bring you back to your family after you’ve passed, the small financial package is a solid bridge to help your family move on a bit easier.

Loving a family means protecting them, and that means getting protections in place to ensure they will always been looked after, even when you are no longer alike. If you’re ready to take control of your family’s future, then you must make sure that you get life insurance before it’s too late — it’s nothing short of what your family deserves!

The Biggest Mistakes Families Make When Getting Life Insurance

Life insurance is something that every family has to decide whether or not to purchase. Generally speaking, the peace of mind gained from having quality life insurance far outweighs the monthly cost of the premiums. If something were to happen to the primary wage earner in the house, the house doesn’t plunge into a lower standard of living overnight. The insurance policy kicks in, and the family can move on in a positive way, unburdened by debt and negativity. That doesn’t mean that moving on after the loss of a loved one is easy, but it does mean that your family will be able to build their lives again after the case of your death.

However, even though there are so many benefits of life insurance, there are families that make some pretty serious mistakes when it comes to getting life insurance. Thankfully, you don’t have to make those mistakes yourself, as long as you know about them ahead of time.

The biggest mistake that families make when getting life insurance is that they underestimate how much life insurance they will actually need. They assume that they only need to replace the income of the person that has passed on, but that doesn’t quite cover everything. Indeed, you will need to plan to cover the cost of the mortgage, any debts, as well as the burial costs. When you add all of those expenses up, you’ll find that they can potentially smother the recently deceased person’s income by nearly triple. The better approach is to look at every possible expense that could be incurred after a person’s death, and then try to get coverage above that limit so that you will have a bit of savings as well. Getting the house and cars paid off is one of the biggest goals that you will need to do after the death of a loved one.

Another mistake that gets made often is that families do not adjust the life insurance coverage upon standard life changes, such as the birth of a new child. If the primary wage earner were to pass on, the difference in expenses could still make things pretty tight.

Overall, these are just a few mistakes that families make when they go about getting life insurance. You can avoid these mistakes easily as long as you stay aware of your options and make sound choices throughout the entire process — get started today!

Life Insurance

Life insurance is something that some people always have, some have when they need to and others never bother with. However, it is worth thinking hard about life insurance before deciding whether or not to take it out.

If you have a mortgage then it is likely that the mortgage company will insist that you have life insurance for the value of the mortgage. This means that they will get their money even if something happens to you. This is also a good protection for your spouse and family as they will not be left with a mortgage policy that they cannot afford.

Some companies offer a degree of life insurance as part of a salary package. This may seem like a fantastic thing, but it is worth considering that you will be taxed on the value of the policy. If you do not have a family it may not be worth having the policy and paying the tax on it when the money will not go to anyone needy if you die.

If you do have a spouse and/or children then life insurance could be a good option for you. You may want to have enough money to pay for your funeral or maybe more money so that they have an income or a lump sum to help them out. Obviously the greater the payout your want or need, the bigger the premium you will pay. You will pay in for the rest of your life.

It could be cheaper to have a savings account but because it is impossible to predict when you die so there may not be time to accumulate very much money. It is a risk that you will need to calculate. It could be worth starting to save up when you are very young, then by the time you get married and have children you will have accumulated quite a nest egg.