With the credit crunch affecting all aspects of our financial situations, many of us find ourselves having to prioritise where the focus of our finances are.

In the process of doing so we may very well be putting ourselves at risk with regards to life insurance .

According to research carried out by leading mortgage brokers, around 59 percent of homes have no cover secured against them, those that have are believed to have insufficient cover.

Research also revealed that many are choosing to say no to the most basic of . Over the last few years, Brits have been shunning cover, despite having a variety of services available to find the most affordable life insurance quote for them.

Many borrowers are now choosing not to take out any type of cover, which could lead to problems in the future – particularly if something should happen to partners or friends who have contributed to the mortgage. In this case it can lead to all sorts of financial problems.

Many consumer bodies are now sending out stark warnings about the consequences of not taking out life insurance . The fear for many, as a result of the credit crunch, is that they simply can’t afford to take out such , as mortgages seem to dominate our lives nowadays.

Insurance providers now making use of a variety of advertising in order to highlight the dangers of not taking out vital , but the subject still remains touchy for a lot of people – and some would rather concentrate on the money that matters for now.

But there are a few aspects you could consider when looking for an affordable policy, which could make all the difference:

  • Check if you can arrange cover through your workplace, or already have some available as part of your contract.
  • Consider taking out two separate , rather than a joint policy – it could work out cheaper for you in the long term.
  • Before you seal the deal, ensure your premiums are fixed throughout the term of your policy.
  • Ensure your policy is written ‘in trust’ – this will help release the money quicker should something happen, and could reduce the risk of relatives paying inheritance tax.
  • Check that the company you’re buying from is regulated by the Financial Standards Authority (FSA)
  • Ensure you have had a will drawn up, this will help outline where your money shall go.

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