Questions with reference to the correct protection
To help you find the right protection insurance for your situation, it can be a good idea to speak to an insurance broker or financial adviser.
Here is a list of questions that you might be asked and for you to ask your adviser.
The golden rule is that if you’re not sure if something is important, check with your adviser.
Questions your adviser may ask:
• Your age
• Financial situation- for example, your income, outgoings, debts, mortgages, etc.
• Savings or investments
• Workplace benefits – for example, death in service? This information should be in your work contract.
• Health and lifestyle- typical questions will be around smoking, if you take part in dangerous sports or hobbies, how much you drink and previous health conditions or current health test results.
Questions to ask you adviser:
• What kind of cover do I need? There are a number of different insurance products and no one person will have the same needs. Your adviser will talk through any financial protection you already have and what you need to protect, before advising you on what insurance products you need.
• How much cover do I need? Your adviser will help you work out how much your payout needs to be if you made a claim. It could be what’s left on your mortgage, a lump sum or a percentage of your salary.
• How did you work this out? Ask your adviser how they worked out how much cover you need. If you think they got it wrong or missed out an important piece of information, ask them to explain their reasoning.
• How long do I need the cover? Would you need cover for 10 or 20 years, the length of your mortgage, until you retire or the rest of your life? Your adviser will help you work this out.
Questions to ask once you’ve decided which insurance product you need
• Are there any policy exclusions? In what circumstances might the insurer not payout?
• Will I need to undergo a medical examination? Most insurance application forms ask all the questions they need. You must answer as fully and honestly as you can. The insurer might ask your GP for more information in a small number of cases. The healthier you are, the lower the cost of the insurance.
• What happens when my policy ends? Your policy will last the amount of time you need – usually until you retire, pay off your mortgage or your children leave home. Your adviser will help you decide. When it ends you stop paying premiums.
• What if I can’t afford my monthly payments? Whether you will be covered if you can’t afford your payments will depends on if you have a “waiver of premium” benefit in your policy. Check with your adviser.