How to Compare Life Insurance
Buying life insurance can seem like a complex task with so many different companies, different insurance types and different deals available. If you’re looking for life insurance then it pays to be clear about exactly what is on offer and be able to compare life insurance deals to find the one that’s right for you.
Before you search for deals you need to know what kind of life insurance you want. There are two main types of policy that insurers offer, these are fixed term cover and whole life cover.
More people opt for fixed term plans because they are generally cheaper but they don’t offer the extensive benefits that a whole life cover plan will.
When you choose a fixed term plan your insurance will last up until you are a certain age, which will be specified by your insurer. This means that premiums are cheaper but if your insurance policy runs out before you pass away you won’t be able to make a claim, so you’ll effectively lose your investment.
However, on average more people pass away before their term is over than don’t so statistically it’s likely that the same will happen to you.
A whole life plan covers you for the duration of your life, no matter what age you live to. This can offer greater peace of mind because you’ll know your family will be looked after whatever happens to you.
With a fixed term plan you often need to declare any illnesses or injuries you suffer after you’ve purchased the plan and your premiums can be adjusted if the risk of your death increases.
With a whole life plan your premiums will be fixed so you won’t have to pay more if, for instance, you suffer a life threatening illness. The majority of whole life plans offer fixed premiums which means your monthly payments will stay the same for as long as you have the policy.
Comparing life insurance
To compare life insurance successfully you need to have an idea of what you want to pay and what you want your beneficiaries to receive after you pass away.
You can then use life insurance comparison sites to find the best deals. When you use a comparison site you’ll find several deals available, but don’t always be tempted to choose the cheapest deal as it may not have all the features you require.
To get accurate quotes that are right for you always enter as much information as you can into a comparison site and make sure it’s accurate.
Once you’ve found a few quotes visit the company site directly and get in touch with an advisor if you want to know more details about the deal your considering.
If you already have other insurance with a company you may find that you’ll be offered a discount if you take up a further policy with the same company. You may also be offered a discount if you purchase your policy online.