When your pocket is pinching and you're pressed for time, it's easy to put off taking out life insurance. But for the sake of a couple of minutes, a few questions and cover to suit your balance sheet, it could be worth doing.
Here are some of the things you might want to think about before deciding if life cover is right for you.
1. Why do you want life insurance?
Leaving a gap in the family is hard for everyone, so the last thing they need is to have their home and lifestyle changed too. Think about how your partner and/or children would manage without your income. For example, would there be enough to continue mortgage repayments?
Financial stability is a key ingredient for a family unit, so it's important to get the right cover to ensure that everyone will be taken care of if you die within the policy term.
2. What do you need it for?
- Living cost support
Let's say you want to support your family's living costs like mortgage or rent, food and travel. A policy offering 'level cover' could be the solution. You'll get a fixed payout if you die or are diagnosed with a terminal illness as we define it, and it's unlikely you'll live beyond 12 months. All you need to do is pick a lump sum, decide your policy's length, and then pay the monthly premium until the policy's term ends. - Inflation protection
By choosing 'increasing cover', the lump sum payable would change in line with inflation. And although monthly payments will also go up, it helps ensure the cover you choose keeps up with changing living costs. - Mortgage protection
You could also get life insurance, as the lump sum could help cover the costs of your mortgage. This could make it easier for your family to remain in your home if you’re no longer around. This type of mortgage protection cover is often called decreasing cover, as the payout decreases each month, broadly in line with how much is expected to remain on the mortgage balance.
If you'd like some help deciding how much cover you need, our life insurance calculator can help.
3. Do you want to cover another person?
You can take out a joint policy to cover a partner too, as it could be more cost effective. But bear in mind that joint policies only pay out once, so it won't cover your partner if you pass away and vice versa.
You can also take out separate policies. If one person's policy pays out, the second person's policy continues, even if the first person's policy ends.
4. Do you want critical illness cover?
No one wants to think about getting seriously ill, but it can strike at any time. And if you have children or other people relying on you, it could cause even more disruption to their lives if you're not covered. So, it might be worth thinking about critical illness cover too, in case a future illness means you're off work for a while.
Get a quote for life cover
You just need to give us your name, address, date of birth, and contact information. We’ll also need to know a bit about your health and lifestyle. To be eligible for our life insurance, you must be aged between 18 and 77 years and a permanent UK resident (or a person legally allowed to remain in the UK permanently).
Most of our customers receive a quote and a decision about cover within five minutes, and all quotes are valid for 30 days.
Answer all the questions honestly. If you don't, your policy could be cancelled, or the insurer might not pay out when a claim is made. In addition, if our underwriter discovers new information while reviewing your application, they may decline your application.
We’re usually happy to cover you if you already have a medical condition, as long as you tell us. But when shopping around, check with the provider, as not all companies offer this.
Most people have a pretty good idea of why they need life insurance. You can take out an insurance policy in just a few clicks, giving you more time to hug your loved ones and make them smile.