| Term Life Assurance is nearly always the cheapest | | | | insurance proceeds in the stock market (hopefully an |
| life cover available. Indeed, it is almost always what | | | | average 10 percent annual return), they'll have a |
| cost conscious consumers think of when getting life | | | | steady income stream. |
| insurance. The plan provides life cover to you for a | | | | Obviously, the 10 percent a year returns have gone. |
| specific amount of time such as 10, 20 or 30 years. It | | | | Work out how much they need and for how long, |
| only pays out if you die and there is no investment | | | | instead. Calculate the monthly bills, multiply them by 12 |
| return or savings account element. Term insurance is | | | | then work out how many years they will be financially |
| very simple to buy and is easy to shop for on the | | | | dependent on you. Then use a large dose of common |
| Web. | | | | sense to arrive at a meaningful figure before trying to |
| Even an inexpensive term policy, if it is not designed to | | | | fid the cheapest life cover. |
| meet your particular financial needs, can still be money | | | | 3. Insuring a young child without need. The objective of |
| down the drain if you are not careful. It is vitally | | | | life insurance is to insure someone who has |
| important that you understand just what you're buying, | | | | dependents who would suffer financially if that person |
| just as it is with every important purchase. The | | | | died. Most children do not have anyone depending on |
| following are some of the most frequent mistakes that | | | | their income so taking out life insurance on a child is not |
| Financial Advisors have said that consumers make | | | | a good idea. |
| when purchasing term life insurance. | | | | 4. Not appreciating that term insurance is temporary. |
| 1. Going for term insurance just because it's the | | | | Remember, it will run out one day and you need to |
| cheapest option. It has been said that choosing life | | | | make sure that when that happens there is no further |
| insurance only by looking at its monthly price is "like | | | | financial responsibility. So buy a term plan that runs for |
| buying a bicycle when you need a car." Making sure | | | | long enough. Try to buy another one in ten years time |
| that your life insurance meets your financial planning | | | | and you might have a nasty surprise at the size of the |
| goals is much more important than just monthly cost, | | | | quote. You might even have developed a medical |
| although you should only buy what you can afford. | | | | condition that makes even the cheapest life cover |
| 2. Selecting the level of life cover using a set formula | | | | unaffordable. |
| to work out the amount of cover needed. The old | | | | Avoid these mistakes when shopping around for the |
| fashioned way of doing things was to buy life | | | | cheapest life cover. The comparison websites have |
| insurance coverage equal to 10 times your annual | | | | moved on over the last few years and are easier to |
| salary or 10 times your beneficiary's annual financial | | | | use. This makes finding the cheapest life cover even |
| need. The idea is that if your family invests the life | | | | easier. |