Do you need life cover?
When purchasing life cover, take into account what other types of life insurance you need, such as income protection and disability cover.
When deciding how much life cover you want, think about:
- All your debts
- Your children’s future childcare and education costs
- How much income your family will need to live comfortably
Life cover is ‘guaranteed renewable’, meaning it will generally only stop if you stop paying for it. It will continue even if you suffer an illness or injury, which would otherwise prevent you from taking out life cover.
Think about what you want to cover. For example, you may want to cover your mortgage, education costs for your children and credit card debt. It is important to remember that the higher the level of cover, the higher your premiums will be. Ask yourself how long you want to hold your life insurance for and make sure you can afford to pay the premiums over time, especially if your premiums rise each year.
Consider whether your family could sell your home and move somewhere else or downsize to raise money to pay off your debts or mortgage.
When researching life cover options, note the difference between the type of life cover discussed on this webpage and ‘accidental death’ cover, which is not guaranteed renewable and only covers you if you die in specified ways. Always ask lots of questions until you understand exactly what you’re getting.