Analytics, Insurance

If you have a family, you have to think about how well they would be able to cope financially in your absence- are your children in higher education for example? Nearly one in twenty children loses a parent during their time at university. It is a horrible thought, but with life insurance you have to think seriously. Obviously if you are single, with no family and no dependents, then there is little point in you having life insurance.

There are two main types of life insurance: level term insurance and decreasing term insurance (also known as mortgage term insurance). Level term insurance guarantees a fixed payment if you pass away within an agreed period of time. This is perfect if you want to ensure that your children can finish university without the risk of your financial aid disappearing, or waiting until your partner reaches a pensionable age.  Decreasing term insurance is used as a way to guarantee that a mortgage will be paid off in the event of your death. The actual amount it will pay out decreases as the mortgage itself decreases in size.

Life insurance is the one type of insurance you don’t actually want to pay out, and especially with level term the less you pay over a period the better. One of the easiest (but perhaps hardest for some) ways to save money on your life insurance payments is to reduce your chances of death- the less likely you are to die, the less of a risk your insurer will deem you. The best way to save money on your payments is to be a non smoker. You may think it is as easy as just saying you aren’t, but if it can be proved you were a smoker then your families’ claim will be void. You have to have given up smoking for at least a year to be classed as a non-smoker. If you are in the process of quitting, do not worry, after a year of non smoking you can renegotiate your insurance. It really does save a lot of money, and is well worth doing.

Of course the best way to save money is to shop around and check out what’s on offer. Whether you’d prefer to call it life insurance or life assurance, Legal & General are a very good choice. Established in 1836, over 5.8 million people rely on them for life assurance, pensions, investments and general insurance plans, so you can count on them to know what they are doing with your money.