Published On: Wed, Jun 12th, 2019

Life insurance UK: Looking to get life insurance? Sainsbury’s Bank share top tips | Personal Finance | Finance

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Some people may choose to protect their loved ones’ financial future by taking out a life insurance policy. A study by Sainsbury’s Bank has highlighted that the most popular reason to purchase a policy is due to buying a house – with 34 per cent of respondents in the survey of 2,004 people in the UK stating this reason. The research showed that 17 per cent of people bought life insurance after having a child, while 12 per cent took out a policy after getting married. Whether they seek it early on in life, or opt for an over 50s policy at a later date, the prospective policyholder will likely be keen to find an option that suits them.

Karen Hogg, Head of Insurance at Sainsbury’s Bank said: “As more people are raising families in rented accommodation, we need to shift our thinking in terms of life and critical illness cover only being relevant for people with a mortgage.

“That’s just not the case. All people need to consider what protection their partner and children may need should anything happen to them, including how to cover rent, bills and household essentials.

“Our research found that people are more likely to worry about the financial implications of their passing rather than taking action to alleviate any concerns and protect themselves for the future.

“Taking out a life insurance policy can help give you peace of mind and ensures you have the financial protection in place.”

Ms Hogg also shared some top tips on getting life insurance.

This includes choosing the right cover for an individual’s situation.

“It’s important to know the difference between life insurance and critical illness cover,” she said.

“Life insurance provides a lump sum payment upon passing during the policy term that can be left to loved ones.

“Critical illness cover can provide a cash sum if you are diagnosed with or undergo a medical procedure for a specified critical illness during the policy term, to help financially during your recovery.

“Both can help ensure that your family’s financial prosperity will be protected in a time of need.”

The Head of Insurance also advised taking note of lifestyle choices in order to improve the deal offered on a premium.

“Small changes that can make improvements to your health and wellness, such as quitting smoking, may also result in cheaper life insurance premiums,” she said, referring to advice from Legal and General.

The Sainsbury’s Bank Insurance boss also pointed out that it is a common misconception to assume a person must reach a certain age in order to pay for life insurance.

She said: “A common assumption is that you have to be a certain age before you get life insurance.

“This is the reason preventing nearly one in 10 (8 per cent) from taking out life insurance, but anyone with financial responsibilities should consider life insurance regardless of age.”

Another word of advice from Sainsbury’s Bank is to take a look at the calculations of how much a policy will cost.

Ms Hogg said: “Before buying a life insurance policy, calculate how much cover you will need.”

A number of life insurance calculators are available online which can help an individual to calculate their monthly premiums.

READ MORE: Can life insurance be cancelled? Best time to act if you want to cancel

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