When it comes to life insurance, it is vital to be honest when you apply. While a pre-existing medical condition may be a temptation to say nothing, you could end up invalidating your policy if you do it. Therefore, in our series of life insurance articles, we are running through all the things you may want to know when buying life insurance.
This includes the potential pitfalls, types of life insurance and general insurance advice.
If you have any questions, we are always happy to answer them at The Cheapest Life Insurance, with no obligation to you to buy!
For peace of mind and protection for those who are most precious to you, a life insurance policy can be very important and valuable. However, if you do pick the wrong kind of life insurance or more importantly, do not disclose important facts and information to your insurer, you may invalidate it.
Low price life insurance policies
Keep an eye out for deals that are simply too good to be true! There are great price comparison websites that offer excellent cover, but there are also companies who are more interested in making a sale. Therefore, just because you get offered a £4 a month policy, check that it won’t increase later on.
It’s always better to go with what you feel is the best deal, even if it is a few pounds more than try and save now and make your family pay a bigger price later on.
Buying two life insurance policies might be better than a joint one
There are life insurance policies that can be purchased for couples. These are called joint policies. They work by paying out on one of the partner’s dying so either on the first partner dying or on the second. A first death policy provides a lump sum for your family which may help with paying off a mortgage. A second death policy could be used to cover potential inheritance tax bills.
However, sometimes two single life insurance policies actually offer better value than a joint one. Two separate policies will often be no more costly but have double the value in terms of payout to any of your beneficiaries.
Telling the truth about your health
With holding any information about your health when you take out a life insurance policy could actually invalidate your policy altogether, meaning it won’t pay out should something happen. Therefore, it is vitally important to be honest about any pre-existing medical condition that you have. Don’t assume that you won’t be able to get cover either. It does exist but it may just be a little bit more difficult to find.