Andrew Merricks, Managing Director of investments at Birmingham-based financial adviser Skerritt Consultants, counsels that it is very irresponsible of people not to have Life Assurance and/or Critical Illness Insurance as he maintains that life has two major threats – either being alive too long and passing away too early.  “Its absolutely vital to have some insurance in place – particularly if you have got small childern,” he states. “In these unsettled times you need to  asemble your own little welfare state because no one else is can do it for you.”

Greg Suttcliffe at Best Deal says now is the right time to buy such policies as there are many very cheap premiums about due to to the intense vying for business within the insurance market. “The cost of life insurance has fallen – gone down by about 42 per cent in 3 years. It has never been so cheap,” he says. “The critical illness market paid out on eighty three per cent of claims in 2005 – increasing from 79 per cent  the during the last year.”

Make sure you check what insurances you already have before you take out any more.  Do you have any investment policies or does your company pension plan give you any cover?

The easiest way to calculate how much cover you require is to add up how much you would require to provide the same standard of living over a year and then times it by 25 years.  The minimum amount needed should settle all debts and and leave a lump sum for your family.

Obtaining the best deal.
When choosing your policy it is very important to read the manual that many insurers have of the illnesses and conditions that they deal with. It will record everything and should be clear-cut and simple to understand.  You will also need to see the documentation of the main points of the insurance which will take account of all exclusions and benefits.

When people take on the responsibility of a mortgage they are more often than not counselled to take out critical illness protection but should look around and not just take the first insurance cover suggested.

If you start paying these premiums when you are younger they are considerably cheaper, very different to leaving it until you are older, when the policy goes up quite substantially.

Insurance premiums can also be lowered by stopping smoking cigarettes.  Mary Lakes, manager of protection insurance at This is Money says “Giving up smoking can save people a significant amount of money as well as hopefully bringing a longer and better quality of life.”

If you stop smoking you can knock as much as a quarter off life, critical illness cover and income protection insurance payments because the data that we now have shows that smoking can cause serious illness and exacerbates any other existing health conditions.

If your circumstances change you may have to alter your policy.

Under no circumstances believe that once you have purchased your insurance policy that you can just keep on with your life insurance and dismiss it. constantly be very mindful of the insurance you have and make certain that, should your circumstances alter, or, is about to change your insurance policy must accommodate these alterations. Perceivable examples are changing jobs, or or maybe you would like to have more children; regularly consider anything that may raise your living costs and must be to be covered if you are taken ill and are unable to work.

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