Top Tips to Choose the Right Life Insurance

Finding the right life insurance can feel like a challenge, with so many different policies and types of cover available. Choosing the policy that best suits your circumstances may sound like a daunting task, but thanks to the team at Caspian Insurance, it has never been more straightforward.


It is important that you understand the different types of life insurance, in order to choose the right one for you and your loved ones. Here we offer some top tips to choose the right life insurance.


1. Do you need life insurance?


Life insurance is also sometimes known as life assurance, and provides a financial lifeline for your family if the worst should happen. Taking out life insurance can ensure your loved ones can deal with any financial worries.


With this in mind, life insurance can heavily depend on your personal circumstances, and it is best suited to those who have people depending on them. For instance, if you have a partner or young children, and your salary is crucial in supporting them, then life insurance could provide the support they need during such a difficult time.


2. What can life insurance be used for?


Life insurance is often used by family to pay off the mortgage, pay for living expenses or other important fees such as school tuition. The right life insurance policy can help to meet any financial obligations that may otherwise have been impossible.


However, the type of life insurance you take out can often determine what it is used for. If your loved ones will need a life insurance pay-out to cover the mortgage, consider your policy carefully. Decreasing term life insurance can be used to pay off a repayment mortgage, but not an interest-only mortgage; for this, you would be best suited to a level term policy.


You may wish to take out life insurance if you become seriously ill. In cases such as this, life insurance policies like critical illness cover may be the best solution. Critical illness cover will pay out a lump sum if you are diagnosed with a critical illness or have to go undergo surgery.


3. Consider your age


Life insurance can be increasingly difficult to secure as you get older, so it may be worth thinking about earlier than you may have expected. As you reach 50, you would be best suited to an over 50s life insurance policy. Life insurance cover of this kind will guarantee acceptance, regardless of your health condition or lifestyle choices.


Generally, the younger you are when you buy life insurance, the cheaper your premiums will be each month


4. How much can you afford to pay?


The cost of your life insurance will depend on the cover you want or need. You should first consider how much financial help your family or loved ones would need if you were to pass away. This will help to determine how much you will need to pay per month.


It is important that you reassess your life insurance cover throughout its term, to ensure you are neither under-insuring yourself nor overpaying.


For further advice and quick, easy quotes, get in touch with our advisors and they will be happy to help.