Summary
It is always advisable to comprehend exactly what you require in the way of insurance as only you are aware of your own situation.  We clarify what you need to be aware of and how to continue it after you have it.

Ian Marsh, a Director of investments at Lancaster-based financial adviser Frank C Booker Financial Services Ltd, warns that it is very shortsighted of people not to have Life Cover and/or Critical Illness Insurance as he insists that life has 2 potential risks – either living too long and passing away too soon.  “Its imperative to have some insurance in place – particularly if youve got a young family,” he says. “These days you need to build your own little fortress because no one else is going to do it for you.”

Matt Morris at Bestdeal says now is the best time to buy such policies as there are lots of very competitive premiums about owing to the fierce competition for business within the insurance market. “The cost of mortgage life insurance has dropped – reduced by about forty per cent in 4 years. It has never been as cheap,” he states. “The critical illness insurance market paid out on 83% of claims in 2005 – increasing from 80 per cent  the previous year.”

Be aware of what insurance cover you have before you take out more.  Do already own any investment plans or does your employment pension fund give you any cover?

The easiest way to assess how much insurance cover you will need is to work out how much you would want to provide the same standard of living over a year and then times it by twenty six years.  The minimum amount required should settle all debts and and leave a decent amount for your dependants.

Obtaining the best deal

When deciding on your policy it is very necessary to read the manual that most a lot of insurance companies have of the illnesses and conditions that they deal with. It will catalog everything and should be clear-cut and simple to comprehend.  You will also want to see the documentation of the main points of the cover which will include all exclusions and benefits.

When someone takes on the responsibility of a mortgage they are more often than not counselled to take out critical illness protection but should shop around and not just take the first insurance policy suggested.

If you begin paying these insurances when you’re younger they are significantly cheaper, distinctly different to leaving it until you are older, when insurance cover rises quite markedly.

Insurance premiums can also be lowered by giving up smoking.  Alison Hines, manager of protection at Tesco Insurance says “Giving up smoking can save people a significant amount of money as well as hopefully bringing a longer and better quality of life.”

If you quit smoking you can knock as much as a third off life, critical illness  insurance and income protection insurance premiums because the data that we now have indicates that smoking can instigate serious illness and aggravates any other existing health conditions.

You may have to change your policy if your circumstances alter.

Under no circumstances feel that once you have bought your insurance policy that you can just carry on with your life and disregard it. constantly be very aware of the insurance policy you have and make certain that, if for any reason your circumstances change, or, are going to change your insurance cover must accommodate these modifications.  Perceivable examples are changing jobs, or perhaps you intend to increase your family; frequently think about anything that may put up your living expenses and will need to to be covered if you are unable to work.