Top tips for buying life insurance

1. Understand what policy you need

Term life insurance lasts for a specified period of time, it is usually cheaper than whole of life. Whole life lasts from the day you open your policy to the day you die. Whole life usually builds up a cash value, whereas term life does not.

2. Don’t pay more than you can afford

If you are getting insurance, you should make sure you get the amount of cover you need. If you can’t afford a level term policy, which means your insurance cover stays the same throughout the policy, try a decreasing term policy. This can be used for mortgages, as the insurance cover decreases over the policy term matching your mortgage debt, thus making the insurance cheaper for the whole term.

3. Shop around for the best deals

If you already have a life insurance policy, regularly shopping around and comparing with other policies means you can see if you need to switch companies. This can ensure you have the best policy and price for you. Always be careful to check what you are losing before cancelling any existing policy.

4. Start when you are young and healthy

If you take out life insurance when you are young, you can lock in cheaper premiums for the long term.

5. Critical illness may be a good option

Even if you don’t have any dependants, but do have a mortgage or pay rent, critical illness cover may be the best cover for you. This cover means that if you are unable to work due to illness, your cover will pay any mortgage or rent you owe during this time.

6. Be honest on your application form

When completing your medical history or application, make sure you are as honest as possible. If you aren’t and a payout is needed, the insurer may dispute any claims made.

7. Consult a financial professional

MyMoney have trained and qualified advisors who can help you decide how much and what type of coverage you need. They can do the shopping around and comparisons you need to get the best deals. Ongoing service also includes updating your coverage when your needs change. This will mean you save time and money.

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