You are here: Home > Travel > Common Life Insurance Downfalls

Common Life Insurance Downfalls

Life insurance is something that many people have, especialy while traveling. However, it is something that some people do not have a good understanding of. They may be relying on it to fulfil a certain purpose but actually not have the right type or amount of cover. They may be paying more than necessary. They may benefit from having it in a trust. It is therefore worth checking to make sure things are set up properly.

Liability Insurance

If on a buisness trip, your employer should have general liabitlity insurance for you. While this may protect you in most circumstances, it still has its limitations. If you are not working and on your freetime, any accedent would not be covered. Therefor it would also be a good idea to have some of your own health or life insruance, in case of any emergancies.

Having the Wrong Cover

It can be really easy to have the wrong sort of life insurance cover without realising. Life insurance is usually required to provide money when someone dies. This may be there to cover the cost of a debt, such as a mortgage or to provide some money for dependents left behind. If an income is required for them, then it is important to have the right type of cover that will provide this, rather than a lump sum. Although a lump sum could provide an income if it was invested properly, it may not provide enough cover and so it is important to check whether it will be enough. It may depend on the interest rates or stock market as well as the place that it is invested as to how much the return is.

Not Having Enough Cover

It is so easy to underestimate how much cover is required and not get enough. Obviously, if you want more cover, the premiums will be higher. However, it could be worth paying more for the peace of mind that the family will get the cover that they need should you die.

Paying Too Much

It is easy to overpay for insurance. There is a lot of competition between insurance companies and so there are some that have really good prices. It is worth checking them out in order to see whether you can save some money. It is worth doing a comparison every so often and then you will know whether you are paying a good price or not.

Not Having a Trust

If you die then the insurance that is paid out will go in to your estate. This means that it is possible that inheritance tax will have to be paid on it. However, if it is protected with a trust, this may not be the case. It can be worth seeking advice on this to make sure that you have had your insurance set up in the best possible way.

Comments are closed.