Finding The Best Life Insurance For You
When it comes to starting your search for Life Insurance, you may begin your search on an engine like Google or Bing. You will be very quickly met with a deluge of information about finding the best protection for you and your family.
Within the very important decision of protecting your loved ones for the future, you will quickly notice that there are many different options to choose from. Also worth noting is that a Life Insurance policy from a provider might be the best life insurance for one person. But it does not mean that the exact same provider will offer the best life insurance for you. Before you start comparing policies, it is important that you have a good understanding of the different types of protection. Including the level of cover that you will need, as well as an affordable monthly budget.
For example, a young couple have chosen to buy a home for their young child and the future, their policy needs would include potentially a combined policy for both of them. In comparison if you had an older person with adult children and no other person reliant on them, they could be looking to create a legacy for their children. Although they seem radically different, many people do make mistakes when buying life insurance, so it is very important to find the best life insurance for your current and future situation.
Best Term Life Insurance
When starting your search for Term based life insurance to protect your family for the future. It is important to identify which Term Life Insurance you may need, the most common types are:
Level Term: This policy type will have the same claim payment amount if you pass away during the length of the policy. So if you were to pass away in year 5 or year 30, the amount your family would receive the same amount. Your monthly premiums will remain the same during the length of the policy.
Decreasing Term: Although it does say what it does “decreases”, it is very important to reiterate that a potential claim payment for your family will reduce over the policy length. By using the example above, if you were to pass away in year 5 your family would receive a larger claim payment. But if you passed away in year 30, your loved ones would receive a much lesser amount. Although the amount that your loved ones would receive reduces your monthly premiums will remain the same during the term length.
Increasing Term: The reason that this policy type is the third option is due to popularity, also of the term based policy types it is the most expensive. This policy will increase over time and you are able to choose how much it increases by. However, your monthly premiums will increase alongside the sum assured.
Term Based Policy Limitations
All term based Life Insurance policies have an expiry date other than if you were to pass away, the time limitations do vary from 2 years to 50 years in policy length. At Life Insurance Cover we have done extensive guide to outliving your Life Insurance policy. The key points to remember are that, your family will only receive a claim payment during the policy length as long as you have made your monthly premium payments.
A Term based policy might be the best life insurance for you should you need to protect a long term investment like a family home. You may also this type of policy if you have young children who rely on you, providing for their future until they reach adulthood.
The best time to obtain term based protection policy is when you are young or in great health because the monthly premiums will be cheaper. However, the longer the term, the more you will have to pay for insurance over the length of the policy. Which is something to think about when looking for the best policy for you.
Best Life Insurance Policies For The Over 50’s
As you move into the over 50’s age bracket your lifestyle has probably changed, as well as your individual needs for Life Insurance. You may have already finished paying for your home or your children could have their own young families. Which could mean that you now need less Life Insurance. Or that you may choose to have a new life protection policy to create a legacy for your loved ones.
Almost all of the UK insurers now offer policies specifically designed for the over 50’s, and these could be the best life insurance for you. However, depending on your lifestyle and health it may work out much cheaper to buy a standard policy. Rather than a non-medical based protection policy as they are significantly more expensive per month with a lower sum assured amount.
Another option that you could choose might be a Whole Of Life Insurance protection policy, which could offer long term protection and help to offset the potential cost of inheritance tax.
Best Whole Of Life Insurance Policies
Unlike all of the Term Based Life Insurance policies, whole of life insurance provides lifelong protection until you pass away. As long as you continue to pay your monthly premiums, your family will receive a claim payment after you pass away. It is very important to understand that this policy type is the most expensive per month and during the policy length, this is because it is a guaranteed payment that will be paid at the end of the policy.
A Whole Of Life Insurance policy can offer more financial stability than term based policy, and it could be best life insurance for you. As long as you understand that you will have to pay a monthly premium for the remainder of your life. Which could mean allocating a portion of your pension to pay for it. As with all Life Insurance claim payment, they are generally not liable to tax. However, it is important to remember the inheritance tax threshold per person is £325,000. Therefore if you think you may exceed that amount, it might be worthwhile placing your policy in trust.
Top Tips To Keep The Premium Costs Down
There are a quite a few things you can put in place to lower the monthly premium costs including:
Picking the amount of cover you need: Insurers refer to the amount that your family will receive in the event of you passing away as the sum assured. While it will be very tempting to pick the highest amount possible, this could lead to unsustainable monthly premiums, which could eventually lead to a cancelled policy. Before buying a Life Insurance policy you should understand what it need to protect for the future. By understanding what you need to protect will be reflected in the sum assured and the monthly premiums.
Comparing policy options: A life insurance policy is a long term commitment, so it is very important to compare all the different providers and policy types. The easiest way to do this is to use an FCA regulated broker, like Life Insurance Cover. If you already have a policy, it is still a good idea to compare other policies to find out if you may need more protection to suit your current circumstances.
Improving your health and lifestyle: When you apply for a Life protection policy, an insurer will assess your age, health, medical history and lifestyle. This helps to work out the cost of your monthly premiums. By choosing to eat healthy, exercising more and cutting down on drinking and stopping smoking can reduce the cost of your insurance.
Comparing Policies With Life Insurance Cover
As a whole of market broker that searches all of the providers for protection policies. We can help you to find the Best Life Insurance For You and your family. Offering peace of mind for the future and within a cost effective budget. As a Broker we are able to access all of the protection policy types, with many policies starting from £5 per month. We search all of the leading insurers including:
And the other many 100’s of providers to help you to find the best protection policy for you and your future. With our no obligation free quotes, we have made the process as simple as possible for you to protect your family.