It can be tempting to get the task of life insurance out of the way as soon as possible, but in times of financial crisis like these, you may find it more beneficial to take heed to five tips that could help with finding the best deal for you.

The life insurance market can be incredibly complicated at the moment, even for individuals who know it well, therefore five pieces of advice, have been identified, which should help you pick through your options most efficiently and ensure your family are financially protected if the worst happens during this current economic turmoil.

The first piece of advice, obvious as it may seem, is to shop around for the policy your need, being aware that it is not wise to trust your bank or any other tied source to provide the best price or advice.

High Street mortgage lenders and supermarkets tend to be tied to just one provider and can prove expensive. Make sure you speak to a company that is not tied to just one insurer and can advise you on the best policy for your own unique circumstances. Remember that no one insurance company can ever be competitive or suitable for everyone.

The right policy

The next piece of information will seem even more obvious, which is to make sure you get the right kind of policy for you. Considering the dozens of different types of life cover plans available, the most common of which is 'Term Assurance' which pays out should you pass away during a specific time period.

The amount you would end up being paid can be level, increasing or even decreasing over time to protect a mortgage.

Cover can also be paid as an income, which is knows as Family Income Benefit, or a lump sum, and a number of other options are available including critical illness, waiver of premium, conversion, renewal and so forth. You can also find policies that will continue until you are deceased, no matter when this might happen.

Third, it is very useful to make sure you buy enough cover. While £100,000 might sound like a lot of money today, in ten years time this is unlikely to produce more than a few thousand a year in income, which wont last anyone particularly long. No set formula works for every individual; however, insuring any debts, such as the mortgage with an extra £150,000 per young child would be a fairly secure start.

Sinle policies

The fourth tip is to take a look at single life policies rather than joint life ones. Previously, joint life cover was a lot cheaper than if a couple took one policy each but in recent years this has changed.

Purchasing two singe policies tends to double the cover and does not leave a surviving partner with no cover in later life, costing but a few per cent more. It is a good idea for couples to compare the prices between the two options before buying one.

Lastly, use a trust. Every £100,000 of life insurance is a potential £40,000 tax bill under current Inheritance Tax legislation. A trust is a free and simple way to make sure that the money is passed on to the right person quickly and, as any asset under trust is not considered part of your estate, upon death the pay out is not taxable.

Set backs in estate planning are rife as it can take months, if not years, for probate to be granted. Assets in trust bypass such delays meaning that you would be paid promptly.