Andrew Merricks, Managing Director of investments at Brighton-based financial adviser Skerritt Consultants, warns that it is very irresponsible of people not to have Life Assurance and/or Critical Illness Cover as he maintains that life has 2 major hazards – either living too long and passing away too soon.  “Its absolutely essential to have some insurance in place – particularly if youve got a young family,” he says. “In these uncertain times you need to construct your own little fortress because no one else is can do it for you.”

Paul Harris at Direct Line says now is the best time to buy such policies as there are lots of very competitive premiums around owing to the fierce vying for business within the insurance market. “The price of life cover has fallen – decreased by about forty per cent in three years. It has never been as cheap,” he adds. “The critical illness insurance market paid out on 85 per cent of claims in 2007 – escalating from seventy nine per cent  the previous year.”

Make sure you check what insurance cover you have before you take out more.  Do already own any investment plans or does your works pension fund give you any cover?

The easiest way to calculate how much cover you will need is to calculate how much you would want to retain the same standard of living over a year and then times it by twenty four years.  The minimum amount needed should pay off any outstanding debt and provide a lump sum for all your dependants.

Making sure you get the best deal

When choosing your insurance policy it is essential that you read the guide that many insurers have of the conditions and illnesses that they deal with. It will catalog everything and should be very clear and easy to comprehend.  You will also want to see the documentation of the significant facts of the cover which will take account of all benefits and exclusions.

When people take on the responsibility of a homeowner loan they are usually advised to take out critical illness protection insurance but should look around and not just take the first insurance cover proposed.

If you begin paying these premiums when you are younger they are very much cheaper, distinctly different to leaving it until you are older, when cover rises quite substantially.

Insurance premiums can also be cut by stopping smoking cigarettes.  Alison Hines, head of protection insurance at Tesco Insurance states ” as well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”

If you stop smoking you can take off as much as a 1/4 off life, critical illness  insurance and income protection insurance premiums because the evidence that we now have indicates that smoking can bring about serious illness and aggravates any other existing health conditions.

If your circumstances change you may have to alter your policy.

Under no circumstances think that once you have bought your insurance policy that you can just keep on with your life and disregard it. constantly be very aware of the insurance you have and ensure that, should your situation change, or, are going to change your policy must have capacity for these ajustments.  Clear examples are changing your job, or or maybe you would like to have more children; often think about everything that may put up your living expenses and must be to be covered if you are taken ill and cannot work.

Bookmark It

Hide Sites