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The Top 13 questions to ask before buying Life Insurance

The Top 13 questions to ask before buying Life Insurance

Here at Beagle Street, we’re all about helping people hook themselves up with the right Life Insurance cover to protect their loved ones, and give themselves peace of mind if the worst should happen. What’s more, we also build cover around their unique circumstances so they’re insured for the perfect amount, for the perfect length of time, and just generally get themselves as good a deal as possible.

But what does a good deal on Life Insurance actually look like? The questions to ask when buying Life Insurance could quickly stack up, so we’ve compiled this list of the top things to consider when researching, selecting and setting up your cover. Take a look…

What do you need your Life Insurance to do?

The role of Life Insurance seems straightforward on the surface; you’re protecting those closest to you from the financial impact of your death. But look beyond the surface and more questions pop up.

Who exactly are you protecting? Your spouse? Your kids? A business partner? Do you need your insurance payout to come in one lump sum, or a steady stream of income? Taking the time to decide the specifics of how your policy might function best for your needs could help you answer other questions further down the line, such as…

How much cover could help you achieve this?

Being covered for a greater amount could, obviously, provide more security, but it could drive up premiums. On the other hand, there’s no point insuring yourself for a lesser amount than your loved ones would need. By deciding exactly who your Life Insurance is designed to help, you could make a more informed decision on how much you need.

For example, you might want to secure, say, ten years’ worth of your income to support your spouse. Or insure for enough to put your children through university. Having a rough idea in your head like that could work out better than just insuring for a random, juicy big number.

How long should your Life Insurance policy last?

The relative merits of Term Life Insurance (which lasts for a pre-agreed length of time before expiring if you don’t die within the policy term) and Whole of Life Insurance (which runs for your entire life until you die) depends on what’s best for your needs. Insuring for, say, 20 years could make sure your children are provided for into adulthood, after which you could reassess your life insurance needs.

Opting for Whole of Life Insurance, on the other hand, could keep premiums lower in the long run, as your risk to the insurer is worked out when you’re still younger and healthier.

What monthly premiums could you afford?

Life Insurance is intended to complement your existing lifestyle by providing peace of mind. For that reason, it’s worth checking how much you could realistically afford in premiums each month. You still have your normal monthly mortgage or rent payments, bills and other outgoings to pay.

Shopping around and using price comparison sites might ensure you get the best cover for your circumstances for as little as possible every month. Use our Life Insurance Calculator to find out how much Life Insurance cover you might need.

What details do I need to provide?

Some Life Insurance providers might need the results of a medical examination from your GP in order to work out your premiums. Others offer Life Insurance with no medical needed, just a series of questions which you could simply answer online.

Compare the services offered by different providers to work out who’s going to give you the easiest and most streamlined experience, without compromising on cover.

Could you place your insurance policy in a Trust?

Writing Life Insurance in Trust could have several benefits. Not only is it tax-efficient, it also cuts out the probate period and could mean your beneficiaries pay-out arrives much quicker.

The tax efficiency comes from the fact that Life Insurance written in trust does not count towards the size of your estate, which might help your beneficiaries avoid inheritance tax. In addition to this, it also lets you specify exactly who benefits from your policy pay-outs, the terms of how they benefit, and let you put in other safeguards against unexpected changes.

Does your insurer offer a Will Writing service?

Under UK law, a Will does not overrule a Life Insurance policy. A Will is just a statement of your intent for what happens with your estate when you die, whereas a Life Insurance policy is a formal legal contract.

This could lead to certain conflicts between your Will and Life Insurance, especially if you marry, divorce or remarry. Getting your Will written by the same people as your Life Insurance could avoid these conflicts by making sure both work together in perfect harmony. Learn more about Beagle Streets Free Will Writing service for every new customer.

Could you change your policy later?

A lot might change in your life, often in a very short space of time. You could change jobs, move house, buy and sell property, have children, get married, get divorced… all of these might affect your need for Life Insurance.

By checking with your insurer whether you are able to amend your policy at a later date, you could avoid getting locked into a policy which could no longer be working for you.

Does your job already give you Life Insurance cover?

Some employers offer Life Insurance to their staff. That might be simply as a perk of the job, or as Key Person Insurance to protect themselves from the financial impact of losing a core member of staff.

Before setting up Life Insurance for yourself, make certain whether or not you already have it through work, along with the terms (if any) of that cover. It could affect how much cover you need, and might change the specific role you need your Life Insurance to perform.

Is your insurer reputable?

Responsible insurers should be eager to show off their credentials and track record, so if you spot one which isn’t totally forthcoming with their background… be wary.

Price comparison sites and consumer groups are a great way to check out whether or not an insurer is right for you. After all, nobody knows the experience of getting cover quite like those who have just gone through it themselves, so be sure to look for reviews from your fellow consumers.

Could you add extras to the policy?

Extras like Critical Illness and Terminal Illness Cover could pay out a lump sum if you develop a recognised, pre-agreed life-changing condition.

If you feel you might benefit from this type of extra protection, check what your insurer offers, as well as the terms under which they’d pay out. The money could be used to make adaptations to your existing lifestyle and help maintain your quality of life.

Could I pre-pay my premiums for later?

It’s possible that you might want to pay larger premiums when you’re in the prime of life, to ease your monthly outgoings later on.

Some Life Insurance providers might let you do this, so check whether it’s an option for you. Even if you wouldn’t be able to pay above the odds straight away, if your circumstances change, it could be a handy possibility.

Does this affect my eligibility for a mortgage?

Some mortgage providers require you to have Life Insurance before they’ll lend to you, in order to protect their investment. When choosing your Life Insurance, double check that your policy satisfies the conditions set by your mortgage provider. If not, you may have to get extra cover to meet the mortgage provider’s requirements.

Learn more about Mortgage Life Insurance and also be sure to read our Homebuyers Guide section on Applying For A Mortgage.

Cheap Life Insurance from Beagle Street

Speak to our friendly team of experts to discuss the decisions when it comes to setting up your Life Insurance. Alternatively, use our online Life Insurance quote tool to get a speedy quote and take the first steps towards securing peace of mind for your loved ones.

Have we got you thinking about how you could benefit from Life Insurance cover? Get in touch today and let’s get started!