Let’s face it, no-one wants to talk about Life Insurance. People generally don’t like to focus on the negative, the “what ifs” or the unknown elements of life.
The sad truth is that bad things do happen and Life Insurance could be the one thing that eases the burden and stress that an unexpected tragedy can bring to your loved ones.
There are many misconceptions about Life Insurance. Some people believe they don’t need it, it is too expensive, and they can’t get it because they are a smoker or are too old.
However it is important to understand that there are different Life Insurance policies available for the varying needs of individuals. The majority of people are eligible for standard life insurance that can easily be completed over the phone, while others may require a medical or further consultation to find the right policy for their needs.
Over 90% of Life Insurance applicants will not experience any difficulty and will be offered standard rates. People who have high risk occupations or who are at a greater risk of developing a chronic illness may have to complete some additional forms, be offered an alternative product or may need to pay a higher premium.
There is one fact that most people ignore and that is it costs nothing to get a Life Insurance quote and it can be done quickly over the phone without any obligation.
Who should have Life Insurance?
People believe they only need Life Insurance when they are married with children, or other financial dependents, that rely on their salary to pay a mortgage, rent and put food on the table. While this is generally the case, the earlier you set up your Life Insurance policy the better, as the rates you pay will be cheaper. The tip being that it is more cost effective and easier to set up your policy before your body ages and you develop any health issues.
How much cover will you need?
The cover value you need will vary depending on your current situation and should be changed as your life changes. A younger person may only require enough insurance to cover the cost of a funeral. A married person with dependent children will need to assess what financial impact the loss of income will have and how much the family will need to maintain their standard of living. As a person gets older, and their family becomes more independent, they may choose to reduce or change their policy.
There are online tools that can help you calculate how much cover you will need, such as the Real Insurance Life Insurance Calculator.
Life Insurance quotes
There are multiple ways to apply for Life Insurance including obtaining quotes online, on the phone, direct application, or through an adviser or broker. During this process you will need to have some personal information on hand such as your age, weight, height, address and occupation. You’ll be asked a series of health questions such as are you a smoker, what are your drinking habits, your family medical history and if you have any pre-existing conditions. Some insurers may request a full medical examination as part of the evaluation in order to allocate the best policy based on your current situation.
Duty of disclosure
Duty of disclosure means you need to be 100% honest with all the information you provide on your current situation that is relevant to your application as it is today. An insurance premium will be cheaper for non-smokers, however, even if you plan to give up smoking you must be honest about your current smoking habits and health status or this could affect the validity of your policy.
Life Insurance is not a popular topic and one people tend to put off or avoid. Having the right policy can make an enormous difference to your family in the most difficult of times.
Life Insurance Key Points:
- Getting a quote is free and easy
- The amount of cover should match your current situation
- Change your cover to suit your needs
- Get Life Insurance early to reduce premiums
- Premiums will rise as you age
- Be 100% honest with your information
Find out more
To find out more about your Life Insurance options, request an information pack, get an obligation free quote online or view the Real Life Insurance-eBook and download the checklist!