How To Grow Savings And Safeguard Your Pension

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THINK LIKE AN ADVISER Most people have way too little life cover (if any at all). Go to an adviser and you will be advised to have up to ten times the main breadwinner’s income as cover, a policy to pay off your mortgage and critical illness cover – this is because you are far more likely to be diagnosed with a serious illness such as cancer than die during the term of a policy. The cheapest option is to take out a term assurance policy (this is life cover for a set term) and add on critical illness cover in case you become seriously ill and cannot work (it would be a pity if you had to stop paying your life insurance premiums just when you need cover!). An adviser will talk you through the small print – so you need to do this yourself. Pre-existing medical conditions (unless disclosed) could mean the policy in invalid. Also, if you smoke, be honest.

GO ONE BETTER To find out how much you really need, go to legalandgeneral.com/life-cover/confused-about-life-cover/life-insurance-cover-calculator. Then purchase online at a discount. While cashback sites – giving you up to £200 in cash – may be tempting, go one better? if you pay a £25 fee at sites like cavendishonline.co.uk and moneyworld.com, you will get far cheaper premiums over the term of the policy. For me, the cost of a 15-year policy was £36.44 cheaper a month or £6,500 over 15 years. Opt for guaranteed premiums so you know what the cost will be over the term.

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