Taking out life insurance could make a big difference to your family, especially if the unthinkable happens to you at a young age. However, you may think that the process of applying for life insurance, and understanding what it contains and entails, may be rather confusing. Learning about some key areas could help you to find the right plan to meet your needs, as well as to look after your family when you’re gone.
When you apply for a new policy, there may be a number of questions you are required to answer. Within this can be limitations based on how old you currently are. Although it may be better for life insurance to be taken out at a younger age, that knowledge may not be helpful to you if you are already approaching retirement. Rather than simply assuming that you are too late to hold a policy, you may instead want to check out over fifties life insurance to see if you are eligible. The age you are when you apply could affect how much you need to pay each month, so you might want to consider looking as soon as possible, particularly before you reach your next birthday.
Consider how much you need
You may not be sure of how much life insurance to get. In fact, many people tend to significantly underestimate how much cover they may need for their family to get by. You may want to factor in the ages of your children, as raising a family can be quite expensive. In addition to this, if your mortgage isn’t fully paid off, this debt will still exist even if you’re no longer here. Should you wish to leave your home to someone once you die, they may then be held accountable for the remaining amount. Having enough cover could mean that the money goes towards paying off the remainder of the mortgage, allowing your children to freely inherit your property and assets, as well as any leftover money.
Changing your mind
Should you wish to cancel your policy, you may want to have a look at the terms and speak to an advisor. There should be a cooling off period when you first apply which, if you cancel in this time, should result in you being refunded for any premiums already paid. Outside of this, you may face administration charges or fees, as stated in your terms. Likewise, the insurance company may also have reason to cancel, especially if the policy has been invalidated due to any of your actions, or incorrect information given. Unlike with a lapsed policy, a cancelled policy may not be able to be reinstated. This means that, should you wish to hold a policy again in the future, you may need to apply for a brand new one.
While death may not be something you want to think about, it can be good to ensure that preparations are in place. Many people think about making their will, or even arranging and paying for a funeral in advance. Life insurance is another preparation you can make that can benefit your loved ones when you’re not here anymore.