Have you just acquired bridging finance broker but are unsure how to get the best use out of it? Do you want one but don’t know if it would be the right thing for you?
Have a look at the article below. We are sure it will point you in the right direction. Based on our feedback so far, it has helped hundreds of our readers. While you are here, have a look at some of the other articles as they, too, are filled with advice and tips on how to avoid the common mistakes.
You might be asking yourself, ‘Do I even need life insurance?’ The answer is yes if you have dependants who rely on your source of income. In case of your unexpected death an insurance policy can provide a payment (or a series of smaller payments or even a monthly income) to members of your family, which can help them to cope with an already highly-traumatic situation.
Even if you decided to take a life insurance cover, you need to make a lot of research in order to go through many different options and choose the one which will be most suited to your individual needs. Knowing what you are looking for can speed up the process and help you save a significant amount of money. You do not need to pay for many extras which you or your family will never benefit from. First of all, make a decision on whether you want a term assurance, which pays out if you die within the agreed term (anything from a few years to a number of decades) or a whole of life cover, which runs until your death. The latter guarantees you a payout, however there are some exclusions you need to bear in mind, such as for instance a suicide.
In order to determine the appropriate term of your policy, have a look at the term of your mortgage or the length of time until your children will be independent. You might want life insurance for as long as you need to pay off your mortgage (so your children will not have to pay it off) or you might need a bigger amount to clear other debts and pay for family expenses such as school fees. Mortgage life insurance is a sub-option within term insurance. Its assured sum reflects the amount outstanding on your mortgage at all times. So, as your debt decreases, so does the amount paid out by the insurer in the event of your death. However, your monthly premiums remain the same. Term assurance is cheaper than insurance for your whole life, but premiums get more expensive as you get older and your health deteriorates. You will also have to pay more if your health condition is already poor, which includes not only being diagnosed with an illness but also being a smoker.
Premiums for smokers can cost even a third more because there is a greater likelihood of a smoker claiming on a policy due to suffering an early death or critical illness. However, there is a way to pay for premiums less – just stop smoking. The insurer will usually classify you as a non-smoker if you have not smoked in the past 12 months. You will be surprised to know that staying off cigarettes could decrease the cost of your premiums even by 50%! Can you see now that quitting smoking will not only improve your health but can also help your wallet?
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