Life Insurance
Life insurance
To the most important thing first - you! Life insurance has come down in price in recent years. This is because people are living longer and there have been improvements in medical science. But before you rush out and get yourself a policy first you should decide whether you really need it.
Life insurance is there for dependants or anyone who relies on you, so it's only really necessary if you have a partner or children. If you're in work, check whether your employer has a Death in Service scheme. This is often part of a company pension and usually pays out a lump sum to your family.
So, if you do need a policy then what kind should you have? Well, if you do have a partner or children then a sensible move could be to buy two separate policies.
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Life Insurance
Joint insurance policies usually pay out when the first person dies which means the second person is usually left uncovered. If you have two separate policies then potentially you could have twice as much cover for just a few pounds a month more.
So, how much cover do you need? You need enough to pay off your mortgage and debts and replace some of your wages. Cover of 10x your income should be enough for any dependants who are left behind.
Remember to keep your insurers up to date on your personal and health details and also any changes in your habits. For example, if you've given up smoking and you've been cigarette-free for over a year, make sure you tell your insurer as this could cut the cost of your life cover in half!
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