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Financial Planning

How do life-insurance premiums vary between men and women?

Women typically live longer than men by around five years, and are less likely to die early from road or other accidents. Therefore premiums are usually slightly lower for women than for men, if all other factors are equal.

How will my age affect the premiums which are paid?

Statistically you are closer to death the older you get (an unfortunate fact of life!). Premiums for life insurance could be up to 10 times higher for someone aged 60 than for someone in their early 20's.

How will my life insurance policy relate to any other insurance or investments that I have?

When you are considering your life insurance policy, you may wish to consider its relationship with the following financial products:

  • Mortgages: Life insurance is often taken up to protect your mortgage payments, therefore most policies should at least cover the full amount of your mortgage loan.
  • Investments: Whole life insurance policies are available as investment vehicles, which will payout when you reach a certain age, or if you die before this date. These should be considered as part of an overall investment strategy, which may include ISAs, savings or individual stocks & shares.
  • Personal loans and credit cards: You should always consider having a policy which will cover any amount you have owing on your loans or credit cards, in order to protect your other assets from being seized by your creditors in order to repay these debts.

Can I take out a life insurance policy in conjunction with my partner?

Yes, this is known as a joint life policy. However, you should be aware that such a policy may only be useful if you have similar incomes. If one partner has a significantly higher income than the other, then it is usually wise to take out separate life insurance policies for each individual.