What should you look for in a life cover policy? Taking out a life cover policy is an important decision for anyone as it can affect what happens to your loved ones when you’re no longer around.
It can be hard to make a decision about which policy fits your personal needs when you don’t know much about how these policies work.
We’re here to demystify the process, so if you want some advice on what to look for in a life cover policy, keep reading.
whether you need life cover: Think about your needs
Everyone has very different needs, and your life cover policy should reflect that. Before making any decisions, you should think about the reason you’re taking out the policy.
Are you trying to protect your spouse or kids, would you prefer payment comes in one lump sum, or all small instalments etc.
Once your iron out all of your specific needs, you’ll find it easier to figure out which policy will work best for you.
Choose a policy that’s right for your health and age
Your premium payments and lump sums are often dependent on your age and health. If you have poor health or are older, you’ll normally end up having to pay much more – this is because, in the eyes of the insurance company, you’re riskier to insure.
If you’re over 50 you can get specific life insurance to protect you, you can also look for policies that don’t charge extra for certain health conditions.
What type of life insurance policy do you need?
When it comes to life cover, you have two main options: term life and whole life insurance. Term life policies will cover you for an agreed-on period of time (which is usually 10, 15, 20 or 30 years).
Or you could choose a whole life policy that will provide you coverage until you die. This can be more expensive as the money you put in will increase in value over time.
Choose a realistic amount of coverage
You may think that when taking out a policy, you only need to cover the most important expenses like a mortgage, but this could be a big underestimation.
As a guide, policy providers will advise you to take out a policy that has a payout of 10 times your annual salary.
Trusted life cover from Sterling Capital Group
At Sterling Capital Group, we offer tailored life cover policies that fit your lifestyle.
We have a team of experienced life cover policy advisors who can help you with the basics of life cover, and whether you need life cover.
To speak to an expert, get in touch with us today.
Choosing whether or not to take out a life cover policy can be a hard decision. It can seem like a big monthly investment, but it can be one of the most effective ways to care for your loved ones after you’re gone….READ MORE