New Year, New Finances: Life Assurance

The is the second in a short series of posts looking at how you can simply sort out your finances for the New Year.

Today we’re talking about life assurance.

Firstly, if you do not have life insurance you should really consider if you need it. Do you have any dependents? What would happen to them should something happen to you? Not necessarily a nice subject, but worth thinking about to give yourself peace of mind.

If you’ve already got cover, think about whether you have adequate protection. What has changed in your life since you took out the policy? Had any more children? Got a bigger mortgage? It’s also worth considering if you still need it, depending on how you life may have changed.

If you’ve got life insurance and had it for quite a while, you could try shopping around for a cheaper deal, as premiums have fallen over the past 5 years, although that might not be the case for much longer. Also, had you taken out cover between April and December last year, you might have been able to benefit from reduced premiums with Pension Term Assurance policies. Sadly, the government has now effectively closed that particular loophole.

It’s easy to get a premium comparison on the web these days in a matter of seconds, but be careful – you must ensure you’re getting like for like cover with any new policy, as although it might seem cheaper, you might not be covered as comprehensively. If you’re a fair bit older than when you first took out cover, or have had ill health, you might find that it’s cheaper to stick with your existing policy.

One final warning – you should never cancel an existing policy until you are sure the new one is in force – we wouldn’t want anything nasty to happen in between one policy ending and the next starting that would leave you uncovered.

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