Life insurance is an important part of financial planning for anyone who has financial dependents. The procedure chosen by consumers to buy life insurance can go a long way in delivering thousands of pounds worth of savings, according to financial website thisismoney.
When choosing life insurance, consumers can opt for level term assurance, decreasing term assurance and whole-of-life insurance, whose terms are very straightforward unlike health-related covers.
This is because “the policies on offer are, broadly speaking, the same”, meaning that “buyers can hunt for the cheapest policy without having to compromise on the standard of cover”. While level term cover is set on the length of time during which an individual wants to be covered, decreasing term insurance sees the sum of the entitlement fall over time.
The most straightforward is whole-of-life insurance, which will pay a guaranteed amount in the event of the customer’s death. Eliminating middlemen is one way to ensure savings are made, says the website, which has advised against just going to one provider because you may walk through the door of the most expensive. Consumers should carry out an internet search to compare products on offer or contact an independent financial advisor who will compare the market and may refund customers some of the money they make from their commission, the website stated.
Who offers the best life insurance premiums?
As mentioned above it is important to use the internet as a research tool when you are looking to buy life insurance. Many of these websites state that they offer the cheapest premium or offer a price guarantee that they will match the cheapest premium you find. To find the cheapest premium try searching for discount premium life insurance or low cost life insurance.
Always check the illustration that the website provides and if the commission payable to the company by the insurance provider is more that twelve times the monthly premium then you could be paying too much for your monthly insurance premiums.
If this seems all too much like hard work there is one simple way of reducing your monthly premiums. Once you have your quote for the protection you need have a look at the total commission that the insurance company is paying the financial advisor or the website for setting up your policy. If this is over say 300 pounds then why not just ask them to set up your policy for a fixed fee of 300 pounds. They may not be prepared to set it up for this amount and you may have to try another company or they may offer to do it for a different figure. Whatever happens what have you got to lose?
Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK’s most trusted information site about personal finance. You can use their free mortgage calculator and get instant online life insurance quote and income protection quotes.