Once your policy has started
Your life insurance policy will charge monthly premiums. Keeping these up will mean that you don’t default and risk invalidating your policy.
You’re insured from the point at which the policy starts. As long as premiums continue to be paid, your policy will remain valid. If you fall chronically ill after taking out your policy, talk to your insurer as soon as possible, as part of your cover may be a critical illness benefit, helping you to manage your outgoings if you’re unable to work.
When you buy your policy, you may be offered the opportunity to buy optional add-ons too. These give you added levels of protection for specific events. For instance, critical illness cover usually pays some of your payout early if you become sick with one of the illnesses defined by the policy. This can help if your illness is causing a loss of income.
Whether you add these benefits to your policy is entirely up to you. Be sure to understand what you’re buying – for some insurers, you may have to add a benefit to your policy whereas for others the same benefit is included as standard. Finding this out should be a part of your research.
The end of the policy
It’s not a nice thought, but life insurance policies end one of two ways: when the term runs out, or when you die.
Except in limited circumstances, your payout isn’t for you to use, but for those you leave behind. They can make a claim on your policy and the beneficiaries will receive the agreed amount.
When you’re taking out your policy, you’ll be thinking about what your loved ones’ living costs are at that moment in time. What would they need to continue to live the life they’re accustomed to? Those are, of course, important considerations.
But it’s also a good idea to think ahead to the future and how these costs could change. For instance, you might be paying for your children to do extra-curricular activities. If you were to die suddenly, some of your payout might be put towards their ability to continue. But in 20 years’ time, this situation is likely to have changed. Your outgoings could be very different – you might have retired, or you might want to ensure that part of your payout is ringfenced for your partner’s care as they age.
So consider what life might be like at the end of the policy to give your loved ones peace of mind.
Life insurance options
We’ve got a range of life insurance products, and there are numerous others available on the market. It’s a long-term investment, so take your time to do thorough research and be satisfied that the policy you’re buying meets your individual needs.
If you need a little extra help, you can always pop into a Post Office branch and speak to our colleagues there. While they can’t offer advice on what the right product is for you, they can talk you through the products we offer and point out features that you might not be aware of. And it’s always nice to see a friendly face. Or you can give us a call to talk through your needs and buy a policy if you think it’s right for you.