Do I need Life Insurance?
If you are single and don't have any children, or anyone that depends on you financially then you don't really need life insurance. You would be much better off using this money to buy an insurance policy that would give you an income if you were unable to work because of illness, for example, income protection insurance.
However if you have someone that depends on you financially, like a partner or children, then you need some life insurance to provide for them if you weren't around to provide for them financially.
How much Life Insurance cover do I need?
In order to work out how much life insurance cover you need you have to do some calculations. First you will need to leave enough money to pay off your debts, like your mortgage and any credit cards or loans and pay for your funeral. Your partner or children will also need money to live on each month, for example, until the children are financially independent, this could be when they are in their 20's if they go to university.
The amount you need to leave after paying your mortgage and debts can be calculated as follows:
Your monthly take home pay after tax and National Insurance,
plus any new costs like childcare
minus any benefits your family might be entitled and any costs they won't have, for example, mortgage payments if this is paid off when you die with a life insurance policy.
This monthly figure should be multiplied by 12 to give you an annual amount and then multiplied for every year your family will need financial support.
For example,
Mortgage £100,000
Cost of funeral and to pay off credit card debt £10,000
£2,000 per month for 15 years (£2,000 x 12 months x 15 years) £360,000
Total = £470,000
How to compare Life Insurance policies
Anyone who sells life insurance is regulated by the Financial Services Authority. It's important that you compare policies and choose one that is suitable for your personal circumstances. Companies selling life insurance have to give you certain information to help you decide.
Documents
Keyfacts – this will tell you how much you will have to pay for the service, the range of products each company chooses from and if they are giving advice or information.
Key Features – this explains the key features of the life insurance policy
How to buy life insurance
Advice
If you buy life insurance with advice the company recommends the right policy for you based on your specific individual circumstances. If you are given the wrong advice and the policy isn't suitable you can complain and may be entitled to compensation.
Information only
If you buy life insurance on an information only basis it's up to you to decide if the policy is suitable. Although advisers selling insurance without advice are regulated by the FSA and have to give you clear information and follow their rules, if you buy the wrong policy it could be harder to make a complaint.
How to Find the right Life Insurance Policy
Life insurance is complicated and it's essential that you choose the right policy. We specialise in life insurance and will search the market and help you find the right cover at the best price available. Quotes for life insurance are free and you are under no obligation.
Questions and Answers
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About 127 million adult Americans are considered overweight, another 60 million are obese and nine million more are severely obese. Obesity and related medical problems cost the nation's medical system billions of dollars each year, but overweight and obese individuals do not have to leave their loved ones without term life insurance protection. The lowest rates go to people who are physically fit, but being overweight doesn't mean you can't get affordable term life insurance coverage.
One of the biggest drawbacks of life insurance is that the rates increase with age. However, even seniors can get affordable term life insurance for there are many specific policies catering to them. Find out when life insurance no exam is a good option.
Compare the best affordable term life insurance online from top companies, we specialize in online term life insurance quotes.
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