In our previous blog – Life Insurance for Women, The Cheapest Life Insurance discussed a couple of points to consider when thinking about protection for your family or partner.
In today’s blog we are following-up with a bit more information on how much cover you may need and also what other things you might consider when researching the life insurance market.
How much life insurance do you need?
What level of life insurance cover you require really does depend on your and your situation. There is however, a general rule of thumb which suggests that your life insurance levels should be adequate enough to pay off your debts and perhaps provide money for your partner and children as financial security.
Some people consider a combination of cover. This may include a lump sum and additional amounts to cover debts and bills, with the mortgage being the priority. You would definitely want to cover this until the end of the mortgage term itself as a minimum.
There are obviously different types of life insurance available to cover you so it’s always a good idea to consider what the benefits of each one is in relation to your needs.
If you don’t have children then your cover may only be for your mortgage and your debts, with perhaps a financial legacy for your partner.
Look at your options
Before you buy do shop around. Using a life insurance comparison service can be a good way to do this as it allows you to look at the benefits more closely and whether they are appropriate for your needs.
Obviously for many people finding the cheapest life insurance is the main focal point but don’t completely ignore a policy because it’s a couple of pounds more. Sometimes it can be more beneficial to pay a bit more and get the exact cover which you need.
Never make the mistake of deciding that your bank or mortgage provider will offer you the best life insurance deal or that you’re automatically getting the cheapest life cover. The reason for this is that they are often tied to one single provider and therefore have no leverage.
A life insurance comparison service is better placed because it often has access to more than one quote and can also offer you things like cash back during the policy.