If you have already got a Life Insurance policy in place or starting to think about buying Life Insurance Cover. It is quite clear that that protecting your family and loved ones is a top priority for you. One of the most common questions raised by our customers is:
How can I get the most from my Life Insurance policy?
Unfortunately there is not a one size fits all answer. But to ensure that you get the maximum benefit from a long term protection policy will need a little bit of maths and a little time.
When choosing to take out a Life Insurance policy can offer peace of mind knowing that families and loved ones have the support that they need. Another key point to remember about taking out a long term protection policy is that it will not only protect your loved ones in the short term. It can create a long term legacy for the financial future of your family. Offering long term security for you knowing that no matter what happens, your loved ones are taken care of financially should the worst happen.
The Cheapest Option Might Not Be The Best
When choosing to compare Life Insurance quotes to find the best policy available should offer reassurance for the future knowing that your family are protected. By getting the most out of your Life Insurance policy will protect them from outstanding debt, household bills and funeral expenses. Alternatively your Life Insurance policy could help to maintain a higher standard of living, rather than having to alter their standard of living. In today’s helpful guide we will run through a few tips that can help you to get the most from your Life Insurance policy.
There are a few important steps to take to ensure that you are adequately protected with a Life Insurance policy, without paying more in monthly premiums:
Choosing The Right Amount Of Cover For You And Your Family
When it comes to choosing the type of cover that you may need for your Life Insurance protection policy. It is very important to ensure that the benefit amount you chose will get the most from your Life Insurance policy. Possible worst case scenarios include the benefit amount falling short when the time comes. Or another potential problem is affordability. If you find yourself in a position where you can’t keep up with your monthly premiums for your policy.
In some of our previous guides we have looked at the consequences of being underinsured and over insured. Both can have serious financial consequences for you and your family. By choosing to make a long term commitment and paying into a Life Insurance policy is important. However, if a Life Cover policy doesn’t adequately protect your loved ones, it can undo all of the good intentions. For example, if a policy term or the benefit amount is not sufficient to cover outstanding mortgage payments. Your family could struggle to keep up with the payment after you pass away.
In many cases, adding a few extra pounds per month to your monthly premium. Could be the difference between financial stability or hardship should you pass away. Alternatively as mentioned previously, if you choose to over insure. It could also be the difference between being able to comfortably manage your monthly premiums. Rather than struggling to keep up with payments.
How Much Does Life Insurance Cost?
Because each Life Insurance policy is created to match the individual’s situation, depending on health and other rating factors. Working out how much Life Cover you need to buy can be assessed on your household financial expenditure. As mentioned above, this is the part for either your maths skills or a calculator. Part of your calculation when assessing your family’s financial needs should include household bills, outstanding loans, mortgage or rent and living costs. This will give you an indication of the financial protection your family will need.
It is very important to not choose a random number that you think will be enough. By taking the time to carefully calculate what your family will need for the future after you pass away. Will help them to have the stability that they will need, some examples of costs include:
- Funeral costs
- Mortgage or rent payments
- Ongoing Household maintenance
- Utility bills
- Family Living costs
- College or University education
- Family holidays
Should I Compare Policies From Different UK Life Insurance Companies?
The very simple answer to this question is yes. By using an FCA regulated broker, like Life Insurance Cover, you can compare all of the UK Life Cover providers to find the best policy for you in one simple search. But the first step should be deciding on what type of policy you and your family will need. The type of policy that you may need will be different to other people because it depends on your personal circumstances:
Families with a mortgage: A Life Insurance policy can be used to protect your family from any outstanding mortgage repayments after you pass away. Could your family or loved ones keep up with ongoing mortgage payments if you were to pass away or become terminally ill? Depending on your mortgage type, either a Level term or decreasing term policy could be suitable. Many choose the policy term to coincide with the length of the mortgage.
Assuming you keep up to date with the monthly premiums, you will be protected within a fixed term and your family and loved ones will receive a lump-sum payment should you die. Therefor allowing them to take care of the outstanding debt and be financially stable. Getting the length of the term right means you are getting the most from your Life Insurance policy. Also not overpaying for unnecessary protection and you’re not leaving your family vulnerable.
Protecting your family: In addition to families with mortgages, if you have a family, you might plan to use a Life insurance policy to help them keep up with rent, utility bills and other living costs after you pass away. Another consideration could be to provide a further additional benefit payment so that your family can maintain a familiar lifestyle.
By choosing to create a financial safety net can also protect your family until your children are old enough to take care of themselves. Many people choose to extend a Life Insurance policy term that lasts until your youngest child has reached their 20s.
Ensure That Monthly Premiums Are Affordable
After completing your calculation on how much long term protection would be beneficial for you and your family, you may still feel like you want more cover. Part of getting Life Insurance quotes includes looking at what optional extras are available. Because each provider is different, they will offer different benefits to you. Some policies will include Children’s Cover and Accidental Death Cover as standard. Another potential policy additional product you may choose, could be Critical Illness Cover.
Because each policy is different and each provider offers different types of benefits. It is important to either do thorough research or use a regulated broker. By using an FCA regulated broker, like Life Insurance Cover, you can be reassured that all of the policy benefits will be explained. Allowing you to find the best protection policy for you and your loved ones.
Compare Policy Optional Extras
Some of the most common policy optional extras include:
Children’s Cover: This additional product can help with extra costs that are incurred from things including medical expenses or school tuition fees. If your child suffers one of the defined serious injuries or illnesses which result in permanent irreversible symptoms.
Critical Illness Cover: This product can either be combined with a Life Cover policy or on its own. This policy will pay a benefit amount to you if you suffer a defined serious illness. Each provider has different requirements, however they all protect these key conditions:
Cancer, coronary artery bypass grafts, heart attack, stroke or other such diseases.
What is covered will depend on the policy from the provider as they do vary between companies.
Accidental Death Cover: This additional product will pay a benefit amount if you are killed as a result of an accident during the policy term. The benefit amount and other details will vary among different providers.
Protecting The Future For Your Family
As detailed above in finding the best way to get the most from your Life Insurance policy, the most important thing is getting the type of policy and benefit amount just right. By making the important choice to be able to comfortably fit your premiums into your budget. Will offer peace of mind to you, knowing that by protecting today you have provided for the future of your family and loved ones.