"Looking at getting life insurance in the UK?"
Life insurance or assurance is a contract between an insurance company and individual(s), where the insurance company pays out, in return for premiums paid, if the insured person dies before the end of the contract.
If your family couldn't make the mortgage payments without your income, you need life insurance UK. If you're single and someone suggests you need life insurance, why you should bother? Life insurance UK is meant to replace your income, for those dependent on you. If both spouses earn, both should have life insurance to replace their income. You don't need to buy it on your children.
You can take out life insurance UK on your own life. Provided you can show that you have a financial interest in them, you can take out insurance on the life of other individuals such as your spouse or business partner.
Avoid buying more than one policy for any individual. Every policy has fees attached. So two £100,000 policies would cost more than one £200,000 life insurance UK policy.
You can take out a joint-life first-death policy which pays out on the first death of one of the lives assured or a joint-life last-survivor policy pays out on the death of the last of the lives assured.
Select a sound company and a reliable agent. Examine the policy carefully.
Carefully review the copy of your application contained in your policy and report any errors or omissions to the company or agent.
Do not pay cash.
Most life insurance UK contracts contain clauses which may lead to a denial of claim during the early years of the term e.g the suicide and incontestability clauses. These clauses may have already expired in your existing contract, but in the replacement contract they may be in force again.
If your health has worsened a replacing contract may be more costly and may contain additional contractual restrictions and/or limitations, than your current one.
A life insurance UK policy is not a savings plan. As soon as the sum insured is paid out the plan ceases. If you survive the term (the length of time insured for) and the sum insured has not become payable, then the plan ceases and nothing is paid out.
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