Which Protection Insurances Do You Need To Take Proper Care Of Your Family?
by admin on Sep.21, 2009, under Life Insurance
Summary
It is always sensible to know just what you are looking for in the way of insurance cover as only you understand your own position. We highlight what you need to be aware of and how to maintain it after you have it.
Ian Marsh, a Director of investments at Lancaster-based financial adviser Peel Townsend Financial Services, cautions that it is very shortsighted of people not to have Life Assurance and/or Critical Illness Cover as he maintains that life has two main hazards – either living too long and passing away too soon. “Its absolutely vital to have some insurance cover in place – especially if you have got small childern,” he says. “These days you must asemble your own little fortress because nobody else is going to do it for you.”
Greg Suttcliffe at Bestdeal says now is the ideal time to invest in such plans as there are some very competitive premiums around owing to the intense vying for business within the insurance market. “The cost of life cover has dropped – reduced by about 42% in four years. It has never been as cheap,” he says. “The critical illness insurance market paid out on eighty four per cent of claims in 2007 – rising from seventy nine per cent the during the last year.”
Always check what insurances you already have before you take out any more. Do you already have investment policies or does your works pension fund give you any other cover?
The best way to assess how much insurance you need is to calculate how much you would want to retain the same level of living over a year and then multiply it by 24 years. The minimum amount needed should settle all debts and and leave a lump sum for your family.
Obtaining the best deal
When making a decision on your insurance cover it is very necessary to read the manual that many insurance companies have of the illnesses and conditions that they cover. It will catalog everything and should be clear-cut and simple to comprehend. You will also want to look at the documentation of the crutial features of the policy which will incorporate all exclusions and benefits.
When a person takes on the responsibility of a home loan they are normally counselled to take out critical illness insurance but should look around and not just take the first insurance policy offered.
If you commence paying these premiums when you are younger they are considerably cheaper, very different to leaving it until you are older, when the policy increases quite markedly.
Cheap Life Insurance premiums can also be lowered by stopping smoking cigarettes. Fiona Jackson, head of protection insurance at AxA Insurance says “Giving up smoking can save people a significant amount of money as well as hopefully bringing a longer and better quality of life.”
If you quit smoking cigarettes you can take off as much as a 1 3rd off life, critical illness insurance and income protection insurance premiums because the facts that we now have proves that smoking can cause serious illness and aggravates any other existing medical conditions.
If your circumstances change you may have to alter your policy.
Never think that once you have bought your insurance policy that you can just continue with your life and think no more of it. constantly be very aware of the insurance cover you have and be sure that, should your situation change, or, are going to alter your insurance must have capacity for these revisions. Clear examples are changing jobs, or do you intend to have more children; often think about everything that may escalate your living costs and will need to to be covered if you are taken ill and cannot work.
