How to Make Sure Your Family is Cared For

We're all feeling the pinch right now but there are some areas of life where you definitely shouldn't be trying to save money!

One of those is life insurance to make sure your family is cared for should anything happen to you.

Indeed, no matter who you are or what you do for a living, you should make sure that you have some sort of life insurance policy.

This is especially true if you are the main breadwinner or a sigfnificant source of income for your family.

Life insurance would ensure that your family would be taken care of should something awful happen to you.

Of course, nobody likes to think about this kind of situation but taking out life insurance gives you peace of mind and means that you can all be prepared for the future, whatever it may hold.

If possible, opt for life insurance with no medical exam for the least hassle!

Life Insurance Terminology

Getting the best life insurance is important but it can be hard to understand what the different words and phrases mean.

Thankfully, Google is your friend!

What Are the Different Types of Life Insurance?

For most people, there are two types of life insurance: term life insurance and permanent life insurance. 

While ideally, everybody would be able to get permanent life insurance, that might not be the best choice for you due to the price of insurance.

Term life insurance works just like your house or car insurance, you pay instalments every year so it is usually cheaper than permanent life insurance.

This is because the term is shorter than the permanent plan, and because it covers you for a shorter period of time.

What Type of Life Insurance Should I Buy?

If you have dependants you should have term life insurance.

This can be used to replace the income that you can no longer provide for your family if you're not around.

Most people who are going to start a family usually go for a 20 year long life insurance policy; that way you’ll be protected as long as your children live at home and are financially dependent on you.

How Much Life Insurance Should I Buy?

You should buy a level of life insurance sufficient that, if invested at the current interest rate, say 5%, the investment will return sufficient capital to replace your income.

This should give you a ballpark idea on how much life insurance to purchase.

How Can I Save Money on Life Insurance?

Term life insurance is the most affordable way to protect your familys future and, as inexpensive as term life insurance is, there are still ways to save money.

Follow these three tips:

1. Get Coverage Early

The sooner you buy life insurance the less your annual premiums will be.

Although it is unlikely you’ll die during your working years, you’re not insuring for what’s likely to happen but instead, for the worst-case scenario.

That’s why term life insurance costs less the younger you are.

2. Get Insured Within 6 Months of Your Birthday

When is your age not really your age? When you're buying insurance!

Your next birthday may be 6 months away but in the eyes of most life insurers you've already hit that next magical number.

When you get a life insurance quote, the rate you are given is based on the age you are closest to which, 50 per cent of the time is your age at your next birthday.

This is called Age Nearest, and that half-year price increase could really add up, so when you are considering insurance try to get it done for you hit the next half birthday!

3. Stop Smoking!

We're all about a strong immune system here, as you know, but there are some unhealthy practices that will cost you big time!

Non-smokers will get a much more favourable rate than smokers.

One final tip, check out your payment or billing options. If you pay your annual premiums up front, you could save up to 10 per cent of your policys premium each year.

With these money-saving tips in hand, term life insurance is more affordable than ever.

There is no better time than now to get the coverage - and peace of mind - you and your family need.

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