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Life insurance first timer? Here’s everything you need to know

By June 30, 2023 November 24th, 2023 No Comments

Getting life insurance for the first time can seem daunting. Having to think about something as significant as how your loved ones will cope financially once you are no longer here can be quite overwhelming. We’re here to help break things down and help you make the right decision for your unique needs.

Help when it’s needed

For some, especially young people, taking out life insurance might not be something you have ever thought about seriously. Life insurance is a crucial safety net designed to protect your loved ones in case the worst happens. Sadly, many families would find themselves running short of money very quickly if the main breadwinner were to die unexpectedly.

Receiving a payout from a life insurance policy can be the difference between your loved ones facing a financial struggle at a challenging time and being able to maintain their same standard of living.

What you need to consider

There can be a lot to think about when it comes to choosing the right life insurance policy. Here are four key questions you might be asking:

1. How much cover do I need?

There’s no one-size-fits-all approach to life insurance. In deciding how much cover you need, consider your existing and future financial obligations, including mortgage and any other debts you may have. Think too about how much income your loved ones might need if you were to pass away.

2. What policy type should I pick?

There are two main types of policy:

    • Term life insurance policies run for a fixed period of time, e.g. 10 or 25 years and pay out if you die during the term of the policy
    • Whole-of-life policies provide cover that lasts a lifetime. This type of policy doesn’t normally have an end date, so premiums are paid until you die

3. How much will it cost?

Every policy is different so there’s no definitive answer! But, with products starting from a few pounds a month, there is a policy for every budget. It’s a very small price to pay for the safety net of knowing that your loved ones won’t suffer financial hardship.

4. Should I stretch the truth on my application?

In a word – no! When applying for life insurance, it is important to be honest about your health and lifestyle habits. If you provide any information that later turns out to be misleading, this could result in your policy being cancelled or your claim being denied.

Don’t do it alone

Sorting out the right life insurance cover can seem a formidable task. When the stakes are so high, it’s a good idea to get advice from an expert – we’re here to help.

As with all insurance policies, conditions and exclusions will apply.

 

David Mortell

David Mortell

David is Ce(MAP) and Ce(RER) qualified and has 14 years’ experience delivering top-rated mortgage and financial advice.In 2014, David took the plunge and started Agentis Financial & Mortgage Solutions with award-winning mortgage broker, Christine Long. Agentis has now become the brokerage of choice in and around Peterborough. David is also a director at our sister company, Agentis Wealth.