Some helpful tips for taking out Life Insurance

5 minutes

Buying life insurance isn't generally something people like to talk or think about, but if you have someone who depends on you financially, it's worth considering.

Take out life insurance when you're young and healthy

Life insurance premiums are generally cheaper the younger you are, as younger people are usually healthier and fitter, and therefore lower risk applicants. So the amount you pay for your cover will be less, the younger and healthier you are.

Be honest

Always be completely honest about your health, any medical conditions and your personal circumstances. Pretending you don’t smoke when you really do, or saying that you only drink one or two units of alcohol a week, when you’re actually a heavy drinker, is a pointless way to try reducing your insurance premium. This is because your insurer might not pay out for a claim and could even cancel your plan if they find out that you’ve been dishonest on your application.

Write your policy in trust

If you’re worried that your estate might be subject to inheritance tax when you die, you could consider putting your life insurance into a trust, which can help make sure that any payouts made go to the person or people you intended them to. However, you should consider speaking to a financial adviser or a solicitor before doing this.

Review your policy

Regularly review your policy and contact us if your contact details change. This will help you make sure that you and your family are covered as required. Examples include the birth of a child, getting a mortgage or changing jobs.

Take out separate policies

Although taking out two separate policies may cost more than a joint policy, they may be better value and more beneficial to couples with dependents, because it gives two payouts instead of only one.

Check existing policies

It’s worth checking if you already have any life insurance cover through either your work or with your mortgage. If you need a hand getting to grips with what's what, perhaps get some financial advice.