Consider Comparing Life Insurance Policies
Life insurance is arguably one of the most important insurance policies as it offers protection for family and loved ones. As with all types of insurance, there are lots of different policies on the market so ensure complete peace of mind for yourself and security for your family by carefully comparing the various options available.
Logical factors to think about before starting the search relate to the level of cover you feel you need. You may want to cover your mortgage repayments or replace the primary earner’s salary. If you have children, covering education or childcare expenses may be of utmost importance.
Starting with the least expensive, the most basic type of life insurance is known as term insurance. This type of protection is usually chosen in order to cover mortgage or loan payments. The key point to remember is that at the end of the term nothing is payable to you if you haven’t claimed and there is no surrender value. This is a good option if all you want to do is cover the outstanding balance of a loan, but as there are several different types of term insurance a bit of research is required.
Whole life insurance is a more comprehensive option which, unlike term insurance, is not limited to a specific time period. You can be certain that the insurance company will pay out the sum insured and because of this the premiums are usually more expensive. Whole life insurance is available at different levels, namely ‘non-profit’, ‘with profit’ and ‘low cost’ so do your sums if looking at the possibility of taking out a whole life insurance policy.
If profit is a factor you see as a benefit of your life insurance policy then it’s a wise idea to review endowment life insurance which is essentially a savings scheme married with a life insurance policy.
There are also different premiums to consider — guaranteed and reviewable. With the guaranteed option your insurer promises never to increase your premium whereas reviewable premiums mean your policy can be reviewed and premiums are likely to increase.
This is merely a scratch on the surface of life insurance options so it really is worth investigating further and comparing offers. Premiums can vary widely between companies for the same policy and spending an hour or two shopping around could save you thousands of pounds. Shaving just ?10 a month off a twenty-five year policy would leave you with an extra ?3,000 in your pocket. Not bad for a few hours research especially when considering the possibility of online research which lends itself to easy and accurate comparison; all crucial factors to making the best choice.
Most people need to compare life insurance for the benefit of their family and loved ones but do remember that it is also possible to list business partners as beneficiaries of your life insurance policy. Whatever your needs there’s a policy out there to suit you, it’s simply a matter of finding it.
Adam Singleton writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.
