In these uncertain times there are a few things that can give an element of security and that is knowing that your family will be cared for when you are gone, but finding life insurance that won´t make you bankrupt before you die is a difficult task.  Asking the right questions when the time comes can mean the difference between finding a quality product that is catering to your needs and not being sure that you have all your bases covered.

Terms that you should be aware of when buying life insurance include the following:-

Your life policy should always be “written in trust”.  By writing your policy in trust you will be assured that when a claim is made that the money goes to the parties that you have nominated rather than your estate taking control of it and having a large chunk of it being used to pay such things as inheritance tax.

A guaranteed policy means that your policies premium will never be increased and is ideal for a long term policy.  When looking at the alternative, a reviewable policy, you may find that each time you chose to review your policy the policy premiums will increase.  The only advantage of a reviewable policy is that the premiums are usually cheaper in the short term, but in the long run they can land up being a far side more expensive.

Joint life insurance policies are ideal for partners and work on the basis of the other partner being paid out on the death of their partner.  The major downfall of this policy is that once the policy has been cashed in the surviving member of the partnership is uninsured and if elderly may find it extremely difficult to get insurance.

When considering your life policy, take a look to see if you can take out critical illness cover at the same time or in the future.  Adding it at the start will mean that your cover will actually cost less in the long run as the price increases with age and the later you apply, the more it will cost you.

Finally there is a vast difference between critical and terminal illness cover.  Make sure that you have terminal illness cover even though it is considered a standard, it may not automatically be included with some policies.  Not having critical illness cover on the other hand can result in not being able to deal with such issues as loss of sight or mobility, which is not terminal but does require financial assistance to ensure a long and full life.