It takes careful planning to choose the right life insurance policy for your family or business. It is also important to review regularly your life insurance needs to make sure that they keep up with changing personal and economic circumstances.
When you have decided on a policy you will have to complete and sign a proposal form. This form asks about such matters as your age, occupation and health. You must answer all questions truthfully. If you fail to do so, it can, in some circumstances, mean that your policy will not pay out.
If you do not understand something about the policy or about the proposal form, then ask the person who gave it to you. All sellers of life cover are obliged to treat customers fairly and honestly. If you suspect the person you talk to does not fully understand the subject, or is not telling you untruths to make a sale-then talk to someone senior in the company. If you are still not comfortable, then go elsewhere
The life industry is much more honest and open than it once was, but there are still overzealous companies and rogue employees -even in the best run organisations.
If you have a serious complaint, go to the Financial Services Authority, which regulates all sellers and providers of life assurance.
Life insurance is a strange thing to buy. The only time you use the product, is when you are dead. It is too late to find out then that it was a bad buy. That is why the product has always been vulnerable to shoddy products and dubious sales practices. All the more reason to take time and research to get your buy right.
Get what you need at a price you can afford
There are lots of providers to choose from so make sure you get lots of quotes.
Going for a long established name may seem sensible. But over the last decade, scores of well know names have vanished by closure or takeover. Who knows which insurer will still be there when you need them in ten, twenty, or thirty years time. Some are unlikely to be around in 3 years time, let alone 30.No one can ever guarantee which company will exist in the future- being around for a hundred years makes no difference whatsoever to future survival. Even for advisors, it is at best an educated guess.
Life insurance pays out to your dependants if you die. Well, that seems simple enough. But is it though?
There are several things you need to consider.
What if I change my mind?
Every effort is made to ensure your application for life insurance is made in the full knowledge of all its terms and conditions, but by law all policies have a “cooling off” period (of at least 14 days). During this time you can tell the insurer you do not want the policy and receive a refund of any initial premiums you have already paid. After the cooling-off period, you may cancel the policy at any time, but will receive no refund of the premiums you have already paid.
