Tuesday, 18 June 2013

Preparing for the future

Every year my husband receives an annual statement from his pension. He has recently received this year's one. Part of his plan includes life insurance so that without his earnings I would be able to carry on at least for a while. It made me start thinking about what he would do if something were to happen to me. I'm not one to be all doom and gloom but with four young children it is something to think about.

I don't have a policy in place for myself at present so wanted to find out about more about taking one out. I spent some time looking through various websites at the different reasons you may want to consider taking life insurance out. They vary from having bought a new house, to starting a family or just simply wanting to insure loved ones.

I was quite over whelmed with the sorts of policies available and trying to decide which would suit my needs. There are Decreasing-term life policies, Family Income Benefit Policies, whole-of-life policies, level-term insurance and Term Assurance policies to name but a few. So you need to consider very carefully which is suitable for you what you want your chosen policy to cover, for example your income. Mortgage, other debts or even medical costs.

Once you have decided on a policy you must be truthful about the information you provide the insurer with. It is important to be honest when taking out one of these policies as if something where to happen and something you didn't disclose were to come to light it would invalidate your policy. I'm asthmatic and have been from an early age, so with this in mind I need to disclose this to any insurer as it may impact the type of policy I am able to take out. This may cause the premium I pay to increase but I would rather be safe than sorry. So it is very important you disclose pre-existing medical conditions. In some instances you may be asked about your family medical history. Thankfully for me I have no family history of reoccurring medical conditions.

I also need to make sure that I am very clear on the conditions of the policy I choose to take out and any exemptions there may be. I need to ask if there is a charge for making amendments to the policy once I have taken it out, even as simple as changing my address.

When looking for Life Insurance Policies there are a number of places you can find information and take the policies out. You can search using a comparison website or price aggregator however some insurers don't appear on these sites so it is worth taking the time to do a search using a search engine and then going direct to their homepage. You can also find leaflets in various shops advertising policies which you can then ring direct to discuss.

So it seems I really have a lot to think about before proceeding further. But I certainly have a lot to think about.

This post is brought to you by Tesco Bank

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