Summary
It is always wise to comprehend precisely what you require in the way of cover as only you are aware of your personal circumstances.  We make clear what you need to understand and how to carry on it after you have it.

Andrew Merricks, head of investments at Cambridge based financial adviser 38 Finance Ltd, warns that it is very irresponsible of people not to have cheapest life insurance and/or critical illness protection as he maintains that life has two potential hazards – either living too long and dying too soon.  “Its absolutely crucial to have some insurance in place – especially if you have got a young family,” he says. “In these unsettled times you must construct your own little welfare state because nobody else is can do it for you.”

Justin Peters at Best Deal says now is the right time to purchase such policies as there are many very cheap premiums around due to to the fierce competition for business within the insurance industry. “The price of life insurance has fallen – decreased by about forty per cent in 3 years. It has never been cheaper,” he says. “The critical illness market paid out on eighty two per cent of claims in 2007 – up from seventy seven per cent  the during the last year.”

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

The simplest way to estimate how much insurance cover you require is to work out how much you would want to maintain the same level of living over a year and then times it by 25 years.  The minimum amount required should pay off any outstanding debt and and leave a lump sum for your family.

Getting the best deals
When choosing your life assurance cover it is essential that you read the guide that most a lot of insurers have of the serious illnesses and conditions that they cover. It will list everything and should be straight forward and easy to grasp.  You will also want to see the documentation of the crutial features of the insurance which will include all benefits and exclusions.

When people take on the responsibility of a homeowner loan they are usually advised to take out critical illness protection but should shop around and not just take the first insurance cover suggested.

If you commence paying these premiums when you are young they are considerably cheaper, very different to leaving it until you are older, when cover increases quite markedly.

Insurance premiums can also be cut by quitting smoking cigarettes.  Mary Lakes, manager of protection at AxA Insurance says ” as well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”

If you quit smoking you can take off as much as a quarter off  life, critical illness  insurance and income protection insurance premiums because the facts that we now have proves that smoking can cause serious illness and intensifies any other existing health conditions.

If your circumstances alter you may need to review your insurance cover. By no means think that once you have bought your policy that you can just continue with your life and dismiss it. At all times be very mindful of the insurance policy you have and be sure that, if for any reason your circumstances change, or, is going to alter your insurance cover must accommodate these modifications.  Possible examples are changing jobs, or or maybe you would like to have more children; regularly consider everything that may increase your costs to live and must be to be covered if you are too ill to work.

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