Looking For Life Cover?
Life cover is something that we very rarely give any thought to, after all it is not a pleasant subject. However, when you consider the state your family would be left in without adequate financial provision, you could wish to prioritise the issue.
If you have a partner, you may also wish to investigate the possibility of a joint policy, which may pay out if one of you should die or be diagnosed with a terminal illness.
What types are there
There are a variety of different types of life cover, including:
- a term life insurance policy that is decreasing (which may be used to pay back a mortgage or any other obligation which decreases over a certain term in the event of death);
- term life insurance (where the amount of money that would be paid out remains the same, but the insurance cover only covers the term of mortgage);
- insurance names whole of life (which are not linked to any particular term); and
- a mix of any of the above.
For some protection that are designed to back mortgages, some borrowers may decide to add an extra sum to the cover. This may allow their loved ones a lump sum should they die unexpectedly, to cover living expenses.
If you bought your term insurance cover from your mortgage provider, you may wish to investigate whether this was the most competitively priced policy available for your individual needs.
How do you apply for life cover?
There are many details regarding your lifestyle and habits that may affect the cost of life insurance. You may find that it may be more difficult to find insurance (or that premiums that are quoted to you may be higher) if you are:
- a smoker;
- employed in a “risky” industry; or
- have a pre-existing medical condition.
Reading the small print
Once you have got your head around the list of exclusions and limitations, you may also wish to consider whether life cover meets your cover needs, or whether critical illness may also be suitable for you. Critical illness cover relates to serious illness that may typically stop you from working, but that may or may not reduce your life expectancy. Sometimes critical illness cover may even be available jointly with life insurance cover.
