Purchasing Life Insurance isn’t exactly a piece of cake. That being said, it doesn’t have to be overly complicated either. There are a lot of factors to consider when finding the right fit, there are no two ways about it. But once we’re familiar with the right questions to ask, it’s a painless process.
Let’s jump right in, shall we?
What do I want from my Life Insurance policy?
When we’re sure what we want from our policy, it suddenly becomes a lot easier to find something that works. But what do you want? Sure, you want to protect your loved ones after you die, but we’re talking details here.
- Who do you want to protect? (spouse, children, parents, pets)
- What would you like to cover? (lost wages, mortgage, living expenses, education, a trip to Disneyland?)
- And for how long?
Ironing out these small details will help when determining what you need from our policy, which brings us to…
How much cover do I really need?
Deciding on a benefit amount is a tricky one. We don’t want to overpay on premiums, but we don’t want to leave our families without enough financial support.
To avoid overpaying (or underpaying) on your Life Insurance policy, consider what exactly you would like the benefit amount to cover. You should then consider your personal finances to find out what you can afford. You can then settle on a benefit amount that will give you the cover you need without breaking the bank.
How long will my Life Insurance policy last?
When it comes to our Level policy, this is entirely up to you. You see, our Level policy will last for a pre-agreed amount of time before expiring (assuming you don’t die within the policy term). Your premiums remain the same each year and you can choose a suitable length of cover anywhere from 10 to 40 years.
On the other hand, you have the Age-Based policy which is recalculated each year as your age increases. Your monthly premiums start at a low rate compared to that of a Level policy. The major difference here is that this is a whole life policy, meaning it can be kept for your entire life.
The right policy for you will depend on your needs. Will 30 years of premiums be enough to finance your children’s education? Will it pay off your mortgage in the case that you die unexpectedly? Would you rather leave a guaranteed lump sum to your family?
Here's an article we wrote that compares Aged Based policies and Level Based policies.
Is this policy flexible?
Let’s face it. Life is full of twists and turns to which our Life Insurance policy options reflect that. Here at Smart, we offer a flexible policy option with our Family Life Policy. That means you can apply to adjust your policy to help with whatever life throws your way.
A change in job circumstances, a new addition to the family, marital separation, relocating. All of these things are the major events in life that affect how much cover we need.
It’s also possible to apply to add on extra covers like Critical Illness Cover or Children’s Cover if you want extra peace-of-mind.
What kind of monthly premiums can I afford?
Deciding on a premium amount that won’t leave you in a financial rut is important, but Life Insurance is probably more affordable than you might think. Life Insurance is there to help you rest easy knowing you’re protected in a worst-case scenario. Your policy shouldn’t have a negative effect on your current lifestyle. But with careful consideration and budgeting, it can be a small price to pay for peace of mind.
Decide how much you can realistically afford to contribute each month.
What details will the insurance company need from me?
Factors like age, family history, lifestyle, health and occupation will affect how much your insurance will cost if you’re taking out a Family Life policy. You can apply to increase or decrease your benefit amount at any time if any of these circumstances change. Maybe you plan to quit smoking or maybe there will be another significant health or lifestyle change to consider – we offer flexibility for this very reason.
If you choose a Smart Guaranteed Life policy, you won’t be asked any medical or health questions. The benefit amount you’re entitled to depends on your age.
Do I need Life Insurance when I already get it through work?
If your employer offers affordable Life Insurance, then great! That’s a big old weight off your shoulders… or so you’ve been led to believe!
Now, we don’t want to burst your bubble here but consider this:
There could be downfalls to receiving Life Insurance through work. For instance, it may not be enough cover to suit your personal circumstances.
If you change jobs, you risk losing your premiums and if you do stick it out till the end, this kind of cover often ends with your retirement. Oh, and not to mention the fact that your employer could withdraw the cover benefit at any time.
You may not wish to gamble when it comes to protecting your family’s future. For full peace of mind, you can always take out a second Life Insurance policy outside of your employment.
But really, when it comes down to it, the biggest question of all is…
Could my family maintain their lifestyle if my paycheck were to disappear?
If you understand how important Life Insurance is, but you’re still on the fence, you need to ask how your family might cope without your income.
If you’re ready to secure a Life Insurance policy, Smart offers flexible, reliable Life Insurance that you can trust. Just fill in our online form today and one of our UK based agents can talk through your options. A member of our team will be happy to answer any of your questions and more importantly to help you get started with protecting those closest to you.