Money | Time to review your life insurance

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No one likes the word insurance, and especially when it concerns life insurance. However, if you want to provide for your family after your death, it is a necessary evil.

Similar to making a will, no one wants to talk about life insurance. Unfortunately, no matter how you try, death is inevitable.

Unlike other forms of insurance – house or health – the benefits are generally the same (paying out on your death), so the main point of difference is price.

As with many insurance policies, however, the older you start taking them out, the more expensive they become. The cost of your policy also depends on the amount of cover you want and how long you want cover for. Smoking, your lifestyle and health are also determining factors for providers.

As there are so many providers, first time policyholders are advised to seek independent financial advice, such as a broker. They may be able to also get you a better rate thanks to their connections with providers, while also explaining the technical T+Cs that are often included.

Always give full and accurate information when filling in application forms. A provider may not pay out if they discover that false information was provided on the forms.  

There are also certain times of your life that you may have to change your policy such as a new child, loan or home. Any change in your mortgage repayments or if you get into arrears will also have to be communicated to your provider.

Switching provider is also a straightforward process if it is not assigned to your mortgage lender. If it is, however, you must work with your lender on releasing you from your original policy and get your new policy legally assigned to them. Your new insurance provider should assist you with this process.