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Get the right cover in case the worst should happen.

Byline: MARTINLEWIS YOU CAN TWEET ME @MARTINLEWIS

ALL parents want to see their children grow up and flourish.

The thought of not being there is almost too unpleasant to bear. Yet I want you to imagine it. One in 29 children - a typical class size - loses a parent before they grow up. I was one. On top of the grief, there are often serious financial considerations too.

Life insurance - which is designed to pay out a lump sum when you die - is a crucial, but often overlooked, financial matter.

There are three main types of policies: | Level term life insurance: This pays out a set amount if you die during a set time. | Mortgage decreasing-term life insurance: This aims to clear your mortgage. So as your mortgage debt drops with time, so does the amount it would pay out.

| Whole of life insurance: This policy is mainly about mitigating inheritance tax costs.

The cheapest, easiest way to protect your family is level term life insurance.

With level term insurance you pay a monthly premium and it pays out a set amount if you die within a set period of time, for example PS200,000 if you die within the next 20 years. The more cover you get and the longer the term you want, the more you'll pay.

A rule of thumb is cover 10 times the main breadwinner's income Aim for a lump sum that's enough to repay any outstanding debt (including a mortgage), and provide for outgoings your dependants would have.

Shortening the term cuts the cost, though generally you'd want cover that lasts until children have finished full-time education.

Those who've had serious medical pre-existing conditions, and smokers, pay more for cover.

Never think of life insurance as a monthly cost, you may be paying it for 20 years, so every PS1 a month cheaper is a saving of PS240. For full help finding the cheapest policy see mse. me/lifeinsurance, but in brief Beware going direct to an insurer, it's a competitive market, you need to ensure you're finding the cheapest.

Even comparison sites can be over-expensive. They may find you the cheapest policy, but they usually also take a huge whack of commission from the insurer.

If you don't need advice, use a discount broker. Here you pay a fee of around PS25, but they rebate all the commission into your policy so it can be thousands of pounds cheaper.

Discount brokers include cavendishonline.co.uk, moneyworld.com and money-minder.com If you do need advice use an advisory broker or Independent Financial Advisor (IFA).

While they take the commission, at least they're doing something for it.

You can find an IFA at unbiased.co.uk and vouchedfor.co.uk, or big advisory brokers include lifesearch.co.uk and lifeassureonline.co.uk | Martin Lewis is the founder and chairman of MoneySaving Expert.com. To join the 12 million people who get his free Money Tips weekly email, go to moneysavingexpert.com/latesttip.

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There are three types of life insurance

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Title Annotation:Features
Publication:Manchester Evening News (Manchester, United Kingdom)
Date:Mar 1, 2018
Words:506
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