1. Compare life insurance policies
First and most importantly, shop around. Prices of policies vary from one provider to the next so it’s always worth comparing them to get the best deal.
2. Pick the right life policy
There are two main types of life insurance policies, “term” and “whole-of-life” insurance.
Term insurance will payout if you die within the policy’s duration.
Whole-of-life insurance covers you until you die, and is therefore guaranteed to pay out.
Whole-of-life tends to be more expensive, so you need to decide whether you need a policy which will definitely pay out, or if term insurance would be suitable.
Going one step further, you can also get what’s called decreasing term insurance, where the pay out gets gradually smaller over time, usually in line with a debt such as a mortgage.
3. Get the term right
You need to think realistically about how long you’d like your policy to run. You might for example, consider linking your policy length to your mortgage, for example, 25 or 30 years. Or, you might want your policy to just run for the time your children are still at home, in which case you might opt for a shorter term.