More and more people in the UK buy life insurance online and the numbers seem to be doubling every two years. The reasons are clear. Prices are lower on the Internet and life insurance is basically a simple insurance product.
Despite the simplicity behind life insurance, most websites channel their customers online through a telephone assistance and consultancy service based on expert staff. They represent your safety net, so if you need a little technical knowledge, help is at your fingertips.
But it is always a good idea to have some main tips in your pocket when you shop online to get life insurance. They will help you ask the right questions and find the best policy.
1. Always have the life insurance policy “written under warranty”.
This means that, in the event of a claim, the money will go directly and immediately to the person (s) designated at the time the policy is withdrawn. It also avoids any possibility that your assets must pay the inheritance tax on the product of your policy and which could represent a tax saving of 40%.
All you need to do is tell the online broker who arranges your policy that you want your policy to be “Written in Trust” and the name of the people who pay the life insurance company in the event of a claim. Then they will solve everything for you. The additional good news is that this service is invariably free. So it’s a win-win situation and there are not many in these days!
2. In the early years, a insurance will be cheaper, but will result in a guaranteed: a best long-term purchase.
With a “guaranteed policy”, the insurance company guarantees that the policy premium will never increase.
With a “Repeatable Policy”, you agree that your insurance company may review the cost of your policy at regular intervals. But do not joke: in our experience, a “revision” is just another word for a price increase. After all, who has heard of an insurance company that renounces the possibility of making you pay more? Review intervals are usually between 2 and 5 years, but this varies depending on the insurance companies. You will find the details of the review intervals in the documents sent to you before accepting the insurance; These are called key functionality documents.
Therefore, when comparing similar policies, in the early years, the awards of a “repeatable policy” will undoubtedly be lower than the premiums of a “guaranteed policy”. Subsequently, the prizes of a revised Policy increase until they reach and exceed the prize of a “Guaranteed Policy”.
In our experience, it can be expected that the monthly rewards of a revisable Politics exceed those of a guaranteed policy in about 7-10 years and then over the next 10 years, more than doubling.
If your budget is currently up-to-date, however, choose a modifiable policy: after all, your salary could increase in the coming years and ease the tension. On the other hand, if the premiums of a guaranteed policy are accessible, we believe that they represent the best purchase.
A footnote Many insurance companies have stopped offering “guaranteed” rates for independent insurance policies for serious illnesses. This is because they experienced much higher demand rates than initially expected. However, it is still possible to find a guaranteed life insurance policy which also provides coverage for serious illnesses. As we have explained, “guaranteed” rates have a particularly good value and if you can get a quote for a guaranteed life insurance policy that includes coverage for serious illnesses, you may have a real deal.
3. Thinking about a joint life insurance policy?
A joint life insurance policy is usually written on a first death basis. This means that the policy will pay on the death of the first owner of the policy, subject to current policy at that time. This leaves the second uninsured and older person. Older people may have difficulty obtaining life insurance at an affordable price, so instead of a common policy, consider adopting separate policies now. In general, it will be a bit more expensive, but you get double the coverage and double the peace of mind.
4. take out a life insurance policy? Now it would be an ideal time to include Critical Illness coverage.
Is it likely that you need serious health insurance in the future? Yup? So, consider adding it now to the life insurance policy you are organizing. Because? There are three reasons
Firstly, a life insurance policy combined with critical illness coverage will be significantly cheaper than buying two separate policies. Secondly, as we explained in note 2, you may be able to purchase a Life and Critical policy combined with a guaranteed premium. That could be a real deal. Finally, the premiums for the coverage of serious diseases increase rapidly with aging, so the sooner you extract it, the less it will be.
5. Do not confuse the coverage of the disease of the Terminal with the coverage of the Critical Illness.
There is a world of difference between terminal illness and coverage of critical diseases, so it is important to understand the difference.
Terminal illness coverage pays the lump sum insured if a doctor diagnoses you a disease that your doctor expects you to die within 12 months. Most good life insurance policies automatically include terminal illness coverage at no additional cost. Basically it’s an upfront payment and welcome.
A Critical Illness policy pays the lump sum insured if you are diagnosed with a chronic wide-spectrum disease and there are no life expectancy criteria. In fact, with many of the insured diseases one might expect to survive for many years. For example: some cancers, heart disease, stroke, multiple sclerosis, loss of speech, sight or hearing, onset of Parkinson’s or Alzheimer’s disease, third-degree burns, etc. Let’s say he was a 40-year-old engineer and lost his sight. A Critical Illness policy would pay off immediately and that money could be vital to help you and your family over many difficult years in the future. If you had just covered the terminal illness, there would be no possibility of payment.
As you can see, the coverage of Critical Illness is much more complete than simply covering terminal illness and, for this reason, coverage for serious illnesses costs more and more.