How long should I take a life insurance policy out for?
London, UK (PRWeb UK) October 26, 2009
Endsleigh offers advice on how to choose life insurance. Knowing which factors affect the cost of life insurance is essential in establishing how much life insurance cover is needed, these factors include your sex, occupation and smoking habits. Other criteria to consider includes medical history as well as current health, so if you have any health concerns or issues get in touch with your life insurance provider to enquire about the implications on your premiums.
The general rule of thumb for life insurance policies is that you should take out a policy that provides roughly two-thirds of your annual earnings if you are the breadwinner of your household. This will ensure your family will be able to continue the lifestyle they have become accustomed to.
The next question is "How long should I take a life insurance policy out for?" according to Endsleigh the average length should be approximately 20 years. Alternatively you can calculate how long it will take until you have put enough money towards your savings to allow you to sufficiently care for you and your family.
Ultimately the amount of life insurance cover you need is completely unique to each individual, but it is worth spending some time on finding the correct policy for you and your needs. It will not only give you peace of mind, but it will most definitely be appreciated by your family in the unfortunate event of it being needed.
You will also need to adapt your policy as the years go by because circumstances changes and you might need to upgrade your policy. A prime example of this is when a family gets a new member then you will need to cater for the new addition to the family as well. So as your pay increases you should adapt the amount you pay towards your life insurance policy to ensure the well-being of your family when you are no longer around to take care of them yourself.