The fact that you are reading this indicates that you already appreciate how invaluable a life insurance policy could be for protecting your loved ones from financial hardship. Such a policy works by providing a one-off, tax-free lump sum in the event of your death.
But of course, the above is not the only thing you need to know about life insurance if you are serious about purchasing a policy. That’s why we make available a free advice line, staffed by UK-based experts, to help you if there’s anything you’re unsure about.
For this blog post, though, we thought we’d spotlight just three of the many mistakes that people can make in their search for a life insurance policy - all the more reason to get in touch with us if you are uncertain about the most suitable next steps.
Failing to understand ‘low-start’ policies
As the term suggests, a ‘low-start’ life insurance policy is one that starts out cheap, but which then has increasingly expensive premiums over the course of the policy term. This could mean that if you purchase such a policy without paying close attention to the fine print, you might be shocked by how much you end up paying later.
‘Low-start’ life insurance isn’t necessarily bad. Some people, such as those looking to quit smoking or lose weight, often purchase them so that they can enjoy the cheaper premiums in the beginning, and then switch to more reasonably priced level term insurance once they have shed the pounds or kicked their cigarette habit.
But with these policies (naturally) tending to appear as the cheapest options on price comparison sites, it’s crucial to avoid being seduced by them if they aren’t the right overall plan for you.
Waiting too long to seek out a life insurance policy
It’s understandable that most of us don’t tend to spend much time thinking about our mortality when in our twenties. But there’s also no question that the best time to buy a life insurance policy is when you are long, healthy and at the lowest risk of dying.
For those who are considering starting a family, already have children, own a home or are living with their partner, it is highly advisable to seek out life insurance as soon as possible.
There’s no getting away from the reality that as time goes on, the quotes you are given for life insurance will go up. After all, the older you are, the greater the risk is of your health deteriorating.
It is therefore recommended that those considering a life insurance policy do so at an early stage, so that they don’t have to worry in future about being charged higher premiums in the event of putting on weight or being diagnosed with a health condition.
Lying during their application for life insurance
This is easily one of the worst mistakes that people make once they have decided on a life insurance policy. And it would be a great shame if you were to find the ideal such policy for your requirements, only to then effectively deny your loved ones a payout at some point down the line, due to being economical with the truth on the application form.
Honesty, then, is absolutely crucial, even when it comes to the information requested on the application form that you might not think is relevant. The fact is, if it’s asked for on the application form, the insurer will almost certainly consider it relevant.
That means you should be declaring all the necessary details about yourself, including your lifestyle and any career-compromising medical conditions you might have had in the past, as well as about whatever medical conditions you may have now.
Sure, being truthful about such things may bump up your premiums in the ‘here and now’. But at least you will have the peace of mind of knowing your dependents will be able to make a successful claim on the policy, when the time comes.
Are you ready to start your own search for the life insurance policy that would best suit your circumstances and needs? If so, simply call our team at QuoteLifeCover today, on 0800 316 6917, for free no-obligation advice that will help you get to grips with everything you need to know about life insurance and other protection insurance.