Your life insurance policy will be effective immediately, however, many will have an exclusion meaning that they won’t pay out the full amount should you die within the first year or two of the policy’s life. If this is a concern, please discuss it with a specialist financial advisor or the policy provider before you take out the policy.
There is much to consider when taking out a life insurance policy, but by asking yourself these questions, you stand an excellent chance of buying the right policy for you, minimising unnecessary risk and expenditure and providing a safety net for your family in the future.
If you are concerned about your family’s finances but don’t think a life insurance policy will help, there are organisations available to help, such as the Citizens Advice Bureau [5] and the Money Advice Service [6]. There are also many Debt charities such as StepChange [7] who are available to help with support and advice.