Many people are neglecting to take out life insurance policies in order to save money, research has found.
According to the Association of British Insurers, 13 per cent of policyholders have cancelled their life insurance during the recession as part of cutbacks. Current statistics show that just 40 per cent of households have life insurance policies.
The Post Office recommends that before discounting life insurance, you should consider all options available, including taking out separate or joint life insurance policies.
There are many reasons for partners to seek separate life insurance policies. For example, one partner may be fitter, younger or healthier, and therefore may get better rates on their life insurance policy. Also, if there are dependant children in the relationship, a surviving life partner may still need continuing life insurance cover if their partner dies.
Some couples may find there to be more benefits from a joint life insurance policy, particularly if you require cover for a mortgage and want a life insurance policy to pay out when the other person dies.