Life Insurance: The Importance of Financial Planning
- Author Laura Ginn
- Published April 28, 2013
- Word count 566
The availability of insurance products over the Internet can make getting the best possible deal in the shortest possible time seem like the end goal where any type of insurance is concerned. This approach works well for motor and home policies, as these are products which customers buy annually, and so any shortcomings which come to light with, for example, the product basis, or administration processes of the insurer, can be swiftly dealt with at the next renewal by changing insurer and/or policy. Life insurance is a little different.
Whilst price comparison and cashback sites may offer life insurance at competitive premiums, ensuring that a policy is fit for purpose is paramount, and this is an area where it is important to consider taking professional advice.
Life insurance is designed to financially safeguard loved ones, and policies will normally run for a number of years, with some more expensive types offering the facility to be in place for life. Moreover, obtaining life cover is dependent on health and age. The proposal form will include questions regarding the potential policyholder’s current state of health, and any existing medical conditions. Where the amount of life cover required is relatively modest, and there are no major health issues, insurance is likely to be offered in a routine way, and once in place, and assuming premiums continue to be paid, a contract exists between the client and insurer for the term of the policy.
The insurer will ask their underwriters to look more closely at applications for insurance where a larger amount of cover is requested, or where health issues are of concern. To put this bluntly, the insurer is looking at the likelihood of having to pay out a death claim, and where a client is in poor health, the level of risk to the insurer is increased. In response to this they may offer cover with rated terms (meaning higher premiums), or decline the policy altogether.
Given these considerations, looking for sound advice and adequate, suitable cover should override purely cost based research. Obtaining the right amount of financial protection, and not over or under insuring oneself, can often be better achieved after taking professional advice, and as part of a financial planning review.
Life insurance is, in fact, usually the initial primary consideration in such an exercise. All good insurance brokers will look at affordability with their clients before being able to make any recommendations to address needs, however, the first advice clients are likely to receive will relate to protection, which usually involves the consideration of some type of life insurance product. This might commonly include compulsory cover to insure the investment of a mortgage lender, protection for a family or inheritance tax planning.
It is also possible to combine life insurance with critical illness cover. This is something that financial planners may offer their clients the opportunity to look at, and, whilst it will increase the cost, combining these two types of insurance is common, and well worth giving consideration.
Everyone’s circumstances tend to change over time, so it may be that once suitable policies are no longer needed, or that it is time to think about different forms of protection or savings. Taking an overall look at your financial situation from time to time gives ongoing peace of mind, and maintaining adequate life insurance is a fundamental part of this process.
Laura Ginn often does a life insurance comparison on uSwitch.com, the UK’s number one price comparison website. This way she makes sure she is always paying for a policy that is affordable.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- What can tourists do in the Caribbean?
- The Unseen Impacts of Financial Noncompliance on Business Growth
- Top 10 Reasons to Use Business Central’s License Plating App
- Exploring BCShows: A Comprehensive B2B Industry Platform
- A Luxury African Safari Or A Caribbean Beach Holiday
- What might be able to be done for osteoarthritis in the future?
- App Development: Transforming Ideas into Reality
- Why is the study of history is critical?
- Navigating Europe with Confidence: Logistics Solutions from Barcelona and Cluj-Napoca
- Taking a Well-Deserved Break: An Introduction to London Respite Care
- Discover the Convenience of Chauffeur Services in Kuala Lumpur, Malaysia
- Fall Holiday Fashion Trends: The Kaftan and Kimono Dress Revival
- Vintage Bohemian Charm: Creating a Home Office Retreat
- Embrace the Maximalist Decor : Unleash Your Boldest Dreams
- The Impact of 3D Animation in Business: Enhancing Visual Communication and Marketing Strategies
- Check Out These 6 Tips For A Great Day Hike!
- Steady Slope Marketing: Launching Your Small Business with Google My Business and Digital Marketing
- Steady Slope Marketing: Boost Your Business with Targeted Facebook Ads
- Steady Slope Marketing: Building Strong Brands for Lasting Success
- Steady Slope Marketing: Maximizing Growth with Google Ads
- Steady Slope Marketing: Building Custom Websites that Drive Growth
- Steady Slope Marketing: Unlocking Growth with Google Local Service Ads
- Steady Slope Marketing: Scaling Your Business for Long-Term Growth
- Steady Slope Marketing: Setting Up Small Businesses for Success in the Digital Age
- Steady Slope Marketing: Elevating Local Search Authority for Small Businesses
- Send Money to India from the UK: Secure Transfers and Remittance Online
- The Power Of Happy Hour: How Bars and Restaurants Can Leverage Promotions To Drive Drink Sales
- Legal And Ethical Considerations When Attempting To Find Vehicle Owners
- The Science Of Music And Exercise: How The Right Playlist Can Boost Your Performance
- The Role Of Government Policies In Accelerating The Adoption Of Electric Vehicles In The UK