Originally published in 2020. Survey figures and market examples below describe that period and should not be read as current prices, insurer availability or claims statistics.
A 2020 survey reported by FT Adviser found that many people had no financial protection in place. If you rely on your income, support children or share a mortgage, it can be worth reviewing what financial help your household would have if you died or became unable to work.
Five questions worth asking about life insurance
1. Is it affordable for my circumstances?
Cost depends on the cover amount, term, age, health and other underwriting factors. A price quoted for one person or year is not a reliable guide to what you would pay today. Consider the monthly premium alongside the protection you need and the exclusions and conditions of the policy.
2. Do I understand what the policy covers?
Term life insurance is designed to pay an agreed benefit if the insured person dies during the policy term and a valid claim meets its conditions. Decreasing cover and family income benefit work differently. An adviser can explain the options, but you should review the policy documents before deciding.
3. Would cover be useful to my household?
Think about essential bills, a mortgage, dependants and any existing savings or employer benefits. Insurance is not the right answer for everyone, and the appropriate amount and duration depend on your circumstances.
4. How are claims assessed?
Historical industry claims figures can help provide context, but they do not guarantee the outcome of an individual claim. A claim depends on the policy being in force, the insured event and applicable terms. Give complete and accurate information when applying and ask about anything you do not understand.
5. Can I apply if I have a medical history?
A health condition does not automatically mean cover is unavailable. Insurers make individual underwriting decisions; an application may be accepted, offered on different terms, postponed or declined. Do not assume availability or a premium before an insurer has assessed your circumstances.
Discuss your options with an adviser
Start a protection enquiry if you would like to discuss Life Insurance, Critical Illness Cover, Income Protection or Mortgage Protection Insurance. This requests an adviser call; it does not generate an instant online quote or promise a particular price. You can also contact IM-Insured with a question.
