When shopping for the best life insurance policy it is important to get the best cover available at an affordable price. Our lives are the most valuable assets we possess so insuring them sufficiently should be the top priority. Shopping for life insurance in the UK can be complicated because there are several providers, each claiming to be the preferred one. There is no one best plan for all individuals but here are some tips for finding the most suitable cover at the lowest price.
Discard the Assumption of a Single, Best Plan for All
One size does not fit all when it comes to life insurance cover. Each person has a unique situation based on age, health status, financial status, and cover needs. A plan that may be ideal for a friend or even a family member may be unsuitable for you.
The size of the insurance company does not always equate to the amount of cover or value of premium offered. Some people find comprehensive cover at excellent prices from small insurers.
The key to shopping for life insurance is to discard assumptions. Begin with an idea of the type of cover desired and research the different policies available. A fast and easy way to request quotes from multiple insurance companies is to use a price comparison website.
Submit a single form that contains personal information and details about desired cover and receive a list of policies and premium quotes from different companies.
Shopping Around Can Reduce the Cost
In addition to insurance companies, banks, building societies, supermarkets, and high street retailers sell life insurance policies. One company may even sell the policies of another as in the example of Nationwide Building Society, which sells life insurance policies from Legal & General.
Premiums for identical policies from the same insurer vary based on where the policy is purchased. Shopping around for cover is one way to get the best deal.
Some life insurance brokers, which deal with multiple insurance companies, operate online. They may offer lower premiums because they pass through some of their commissions to the insured. Some even rebate commission throughout the policy term, reducing the premium on an ongoing basis.
Both price comparison sites and online brokers offer competitive quotes for life cover.
Cashback sites allow consumers to purchase life policies from insurers and receive rebates through the third-party sites. A cashback or voucher offer is usually only recommended when a policy quote is near or at the top of the table. Cashback offers vary from one site to the next, with the same insurer offering different cashback and voucher deals through different cashback websites.
Buying Direct
Some people prefer to avoid cashback and price comparison sites, instead purchasing life insurance direct. Different providers rise to the top based on the policy term, age, and smoking status of the consumer. Companies to research include Aviva, Sainsbury’s Bank, LV=, Saga, and Zurich. Comparing insurance companies is equally important when buying direct but it may take more time.
People who do not know what type of life insurance they need should contact a financial provider or unbiased insurance professional offering free advice. Several charities and other non-profits advise consumers on insurance and financial topics free of charge.
Once consumers know which type of life cover is best for their situation, they can follow the approaches above to find the most comprehensive policy at the lowest price.