Like making a will, organising life cover may be something that you have put off because it involves contemplating your own demise. However, when you consider the state your family would be left in without adequate financial provision, you may typically wish to prioritise the issue.

If you have a partner, you may also wish to investigate the possibility of a joint policy, which may pay out if one of you should die or be diagnosed with a terminal illness.

What types are there

There are a variety of different types of life cover, including:

• decreasing term life insurance (which may typically be used to pay back a mortgage or any other obligation which decreases over a certain term in the event of death);
• term life insurance (where the amount of money that would be paid out remains the same, but the insurance cover only covers the term of mortgage);
• whole of life policies (which are not linked to any particular term); and
• a mix of any of the above.

For some cover that are designed to back mortgages, some borrowers may decide to add an extra sum to the cover. This may allow their loved ones a lump sum should they die unexpectedly, to cover living expenses.

If you bought your term cover from your mortgage provider, you may wish to investigate whether this was the most competitively priced policy available for your individual needs.

How do you apply for life cover?

There are many details regarding your lifestyle and habits that may affect the cost of life insurance. You may find that it may be more difficult to find protection (or that premiums that are quoted to you may be higher) if you are:

• a smoker;
• take part in what is seen as a risky job; or
• have a pre-existing medical condition.

Reading the small print

Once you have got your head around the list of exclusions and limitations, you may also wish to consider whether life cover meets your insurance cover needs, or whether critical illness may also be suitable for you. This added insurance gives peace of mind against an illness that is classed as being critical. Sometimes critical illness cover may even be available jointly with life insurance cover.