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Often thought of as a morbid topic for discussion, the issue of life insurance is however, an important one. The sudden loss of a spouse or parent can not only cause emotional damage but can wreak financial havoc on dependents, due to funeral costs, the sudden loss of household income and the possible need for extra help and support especially there are young children that need to be looked after. So what should you look out for when weighing up life insurance options?

- How much insurance do you need? Depending on what you want to cover and how much you can afford life insurance can be used to cover funeral costs, to support those who are left behind, and to pay off any debts, including mortgages. Everyone’s personal circumstances are different so life insurance will differ somewhat, even between similar households. If your children are grown-up and financially independent, they will not need as much support as if they were still young. Your premiums will depend on how much cover you require.

- What kind of insurance suits you best? There are several different types of life insurance – Level Term, Decreasing Term and Whole of Life insurance – check out reputable companies such as Legal & General, to see what kind of insurance they offer. Level Term insurance means that the amount of the benefits paid out will remain the same over the length of the term until the term ends. However if the policyholder survives past the term, no benefits are paid. Terms can range in length from a few years to a few decades. Decreasing Term is similar – however the benefit payable over time decreases to zero at the end of the term – this is can be chosen to protect a repayment mortgage so that the amount of insurance decreases as the mortgage debt decreases. This is usually the cheapest kind of life insurance. With whole of life policies the premiums are usually more expensive but there is no expiry date on the policy – a payout is guaranteed when the policyholder dies.

- How will my health affect my policy? Whilst each Insurance companies use various factors and statistics to weigh up how soon you are likely to die so that they can calculate a premium that reflects your likelihood of claiming on the policy. Drinking, smoking and being overweight are known to be damaging to your health and as a result premiums are likely to be higher than for a person who doesn’t smoke or drink. Age is another factor – it will be far more expensive to get life insurance at 60 than at 40. A lot of life assurance companies such as Legal & General offer online quotes. Some specialist insurers will insure exceptional cases but in a worst-case scenario companies may refuse to insure someone with very poor medical history.