Comparing Your Life Insurance

It’s important to shop around and compare the best life insurance policies and quotes available to you in order to get the best possible deal for your personal set of circumstances. This can be done easily by filling out our online comparison form.

It is even more crucial to compare quotes from a range of different providers because each provider will analyse your individual set of criteria differently, and will likely give you a different quote based on this.

By filling out our online form, your details will be used to generate quotes from the leading insurance providers. You will then be introduced to an insurance advisor who will give you a detailed breakdown of the policies which are most relevant to your situation and help you make an informed decision.

The following page will outline the factors which are taken into consideration to ensure that you are attaining appropriate value for the money you pay on your premiums each month.

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How it works

1. Fill out our form

This will give us all of the information needed about your insurance policy requirements and aid in the comparison process.

2. Speak to your advisor

You’ll instantly be put in touch with an advisor who will explain the details and benefits of the best insurance policies for your individual situation.

3. Speak to your chosen insurance provider

Once you and your advisor have found the policy is right for you, the application process is easy and straight forward.

What type of life insurance is best suited to me?

When looking around for the ideal life insurance deal for your situation, you should first determine the primary areas of your expenditure that you are seeking to cover and then identify the most suitable type of insurance for you. The following are the main types of life insurance:

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Level term Life Insurance

Level term insurance deals are the most commonly used form of cover by consumers, and simply involve a policyholder being insured for a fixed period of time. In the event that the policyholder passes away during the term of their cover, their insurance company will pay out, though this will only happen whilst the term is still running. The amount that a policyholder will be covered for, and the amount their dependents are paid out in a lump sum when they are die are kept the same throughout their deal.

Level-term life insurance policies are often taken out by families with an interest-only mortgage, because the lump sum payment should ensure that they are able to cope with the immediate financial demands placed on them from mortgage payments, in the event that the main breadwinner passes away. However, they are also cheaper than whole-of-life insurance, and can be used for a number of expenses by a deceased policyholder’s family, such as for paying for their children’s education or future health costs.

Family Income Benefit Insurance

Family income-benefit insurance- Family income benefit life insurance is a form of decreasing-term cover consisting of the amount you are covered for, which decreases as your term progresses. Like all term-based insurance deals, your dependents will only be paid out if you pass away whilst your deal is still running. However, family benefit income policies are different to other deals as your dependents will receive payment from your life insurance in the form of a number of different sums, paid out on either an annual, quarterly or monthly basis, rather than receiving it in one lump sum.

This form of life insurance can provide you with a flexible and alternative option to other more traditional policies, as you can ensure that your dependents are left with a steady and regular flow of income in the event that you pass away unexpectedly. In particular, this kind of insurance can benefit families which have a number of different monthly expenses going to different places, as the regular income can then be used to continue making these even after the main breadwinner dies.

However, family income benefit insurance would present you with poor value for money if you were to die close to the year that your deal is set to come to an end, because the final payout your family stands to receive will be markedly lower than it was at the start. You will need to consider the rewards and risks from using this type of insurance, and weigh them up against each other, before coming to an accurate value judgement about whether it’s well suited to you, and stands to provide you with value for your money.

Mortgage Protection Insurance

This type of insurance will ensure that the immediate mortgage repayments, which your dependents are faced with, are covered in the form of a lump sum payout, in the event that you pass away. If you decide to take out insurance of this kind, you can choose from one of two types: increasing term and decreasing term.

If you opt for an increasing-term insurance deal, then the amount your dependents stand to be paid out when you die rises every year into your term. However, this will mean that the amount you pay for your premiums will be more expensive and you should determine whether your family will need so much money to cope with the demands of mortgage payments should you die. Increasing-term and level-term insurance deals are better suited to individuals who have an interest-only mortgage, as it should provide their dependents with a sufficient amount of cover to afford these payments for a considerable stretch of time.

If you choose a decreasing term deal, then the amount your dependents stand to be paid out in the event you pass away decreases with every year that passes within your term. The premiums for this type of insurance are far cheaper than ones from increasing-term deals. Usually, this type of policy is used by families who have enough money to continue making payments even if the insurance holder dies, and make regular contributions towards paying off their mortgage at present as well. A decreasing-term deal can benefit people in these circumstances the most because the amount they are covered for falls in accordance with the amount of mortgage debt they have left outstanding as well. However, families with a less steady income, an interest-only mortgage or a sole breadwinner should probably choose a different deal as they are putting themselves at risk of a low payout should the policyholder die in the latter years of their deals term.

Whole-Of-Life Insurance

As it sounds, this type of cover will ensure that your dependents are paid out a lump sum of cash regardless of when you die, though the premiums will be far more expensive than standard life insurance deals with a fixed term. There are two main types of whole-of-life insurance which are: balanced cover and maximum cover.

Balanced cover is the frequently used type of whole-of-life insurance and involves 50% of your insurance contributions being put into an investment fund and the other 50% being put into your dependents potential payout total. This kind of cover can be advantageous because you can raise the amount your dependents stand to be paid out through shrewd investments, though you also put yourself at risk of lowering this sum if you do not invest wisely.

Maximum cover will ensure that you are insured for the remainder of your life, though you will be given assurances that your premiums will stay at the same cost for at least ten years. When this period comes to an end, you will likely be subjected to a review and you might be faced with higher premium payments.

Whole-of-life insurance is best suited to more wealthy individuals, who can use the cover as an opportunity to set up a trust fund in which to place the assets they want to give away as inheritance. By doing this in advance, you can ensure that the people who receive your assets after you die are not subjected to inheritance tax, which can often be supremely costly.

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The Best Providers

Your advisor will compare quotes from the leading life insurance providers in order to get you the lowest quote possible, while still ensuring that your life policy meets all of your requirements.

How should I ideally pay for my life insurance premiums?

There are two different ways you can pay for your insurance premiums, which are:

Fixed Rate

With deals such as these, the amount you pay on your premiums will remain the same throughout your insurance term, and they require a higher initial outlay than paying with a reviewable rate. However, they will probably provide better value for money in the long term, and will make it easier to plan your finances so that you are always able to make your payments on time.

Reviewable Rate

When paying for a policy with a reviewable rate, the amount you are expected to pay will be evaluated on a regular basis and will most likely rise as your insurance term progresses. Usually, the initial payments are cheaper when paying for your insurance with this type of rate, though this will rise steadily thereafter so you will need to weigh which manner of payment is best suited to you.

What bonus features should I look out for when pursuing the acquisition of life insurance?

As well as looking at the costs and type of insurance when shopping around for the best deal, you should also decide whether you want the current bonus features to be part of your agreement:

Fixed rate inflation clause

If you attach an inflation tracker to your insurance deal, then the amount your family gets paid out every year after you die will rise in accordance with the inflation rate in the UK, as measured by the consumer price index (CPI). This can be a useful way of ensuring that your dependents are amply catered for financially and have enough cover to deal with the rising expenditure demands of the future. However, adding an inflation tracker to your policy will make it more expensive, so you will need to decide whether you deem it necessary for purchase, or whether you are better off just covering your dependents for a fixed sum of money.

Waiver of premium facility

This facility will ensure that your premium payments are upheld for you in the event that you are rendered unable to work. This could happen due to an unexpected injury or a sudden illness, and will ensure that your life insurance remains valid even when you are unable to make your payments.

Renewal clauses

Certain insurance deals come with a renewal clause attached to them, which allows you to retain the same financial terms and conditions of your existing deal, when it comes to getting a new policy, following expiration of your previous term. This can be beneficial if you are young, because your premiums will typically be lower when you first obtain a life insurance policy, but will rise steeply as you get older. By getting a renewal clause, you can guarantee that you get an equal deal to the one you initially use, even whilst you age.

Type-change clauses

Some life insurance providers will allow you to have a type-change clause in your policy which will authorise you to change the kind of cover you have from one type to another. This can often provide you with a huge degree of flexibility as it can allow you to modify your life insurance deal in accordance with the circumstantial changes in your life, e.g., the birth of a new child during your insurance term. In cases such as these, you could change your life insurance deal to an increasing-term package to a decreasing-term policy, as you might believe that your family now requires more money than was covered in your initial insurance arrangement.

Key points to consider when comparing life assurance deals

The following is a checklist of the points you should consider when shopping around for life insurance:

Level term Life Insurance

How much do I actually need to be covered for? You can calculate this by adding up all of your monthly expenses and the total of all your outstanding debts. This includes all outstanding secured loan, credit card and personal loan debt that you have. After this, you should determine whether you currently have any form of life cover, either through your mortgage deal or your workplace. If you do, then subtract this value from the total of your debts and expenses to calculate the total amount you should be covered for.

Family Income Benefit Insurance

Make sure you evaluate the small print of any prospective policy you are considering taking out so that you are clear about exactly what you are paying for. You will need to be fully aware of what is and what isn’t covered in your policy, how your dependents will be paid out, how much they will be paid out and the amount you will need to pay for your premiums each month.

Mortgage Protection Insurance

Look at different provider’s policies towards late repayment, as these can vary substantially. Some will simply issue you a warning or will be lenient over missed payments, whilst some will choose to fine you. In the worst cases, your policy could be cancelled by an insurance provider, so prudent counsel dictates you should look around for the less stringent providers and put yourself at the smallest possible risk of having your deal prematurely terminated.

Whole-Of-Life Insurance

Evaluate the amount of income you earn at present and ascertain whether it is financially viable for you to make regular and full payments towards your premiums each month. A failure to make your payments consistently and on-time could result in the termination of your agreement, which will effectively mean you wasted large amounts of money on insurance that was cancelled.

Mortgage Protection Insurance

Analyse the age thresholds contained within your policy. This is important because a number of deals will provide you with a certain amount of cover to a specific age, and will then necessitate you renew your policy after you have passed this age.

Whole-Of-Life Insurance

Provide your insurer with accurate information about your medical history, family’s medical history and your own lifestyle and hobbies. This is imperative because your dependents might be prevented from getting paid out, if it arises that you gave your insurer false details or misleading information when you purchased the policy.

Whole-Of-Life Insurance

Remember, if you are unhappy with your policy or believe you have made the wrong purchase, you will usually have 30 days from the date of acquisition in order to cancel it. If you decide to do this, you should receive a full refund and will be free to seek a new policy thereafter.