Life Insurance FAQ
What is a life insurance?
It is not a legal requirement to have life insurance in the UK. It is more of a safeguard for all your dependents in the eventuality of your death. A life insurance provides financial support to your partner and children. It is basically an investment where you buy a large sum of money that will be paid out to your dependents after your death. At the same time, it will take care of any mortgages or debts that you leave behind so that your family does not have to struggle to pay them off.
Do I need life insurance?
If you are married, have a partner, children or any dependents, a life insurance is definitely the thing for you. However, if you are single with no dependents, then getting a life insurance won’t be so important.
What are the different types of life insurance policy available?
Life insurance can be broadly categorized into Whole Life Insurance and Term insurance. Under whole life insurance you will be insured until death. In term life insurance, you will be covered for a limited time. Term life insurance is a cheaper policy compared to whole life insurance.
How much does a life insurance policy cost?
It basically depends on the state of your health, your gender, occupation, age, height and weight, medical history and also your family medical history. You should be completely honest and truthful when you purchase the policy. You have to pay a higher premium if you are a smoker, overweight or over a certain age. This is because then you will be considered as someone who poses more risk for the insurance company. Your premium will be cheaper if you are young and healthy.
Can I cut down on the price of the policy?
As said above, certain factors lead to higher payment of premiums. If you lose weight, quit smoking and have a healthy life style then you definitely will be able to cut down on the premium payment. Also, if you buy your policy at a younger age you can get a relatively cheaper policy.
Before selecting any one insurance company to buy your policy, you should shop around. Different agents will quote different prices. You can conduct an online search to get the best possible rates. You will find a lot of insurance agents online who give very good packages you could choose from them.