When choosing your life insurance policy you may be given a few different options. Different types of life insurance can produce different outcomes for you as a policy holder and certain cover may suit your lifestyle and circumstances better than others. Familiarizing yourself with cover types may help your understanding of how life insurance works but don’t forget that any good life insurance company will fully explain all of your options before proceeding any further than the quote stage. Let’s take a closer look at whole of life insurance.
Whole of life insurance pays out a lump sum when you die and is often taken out to provide your loved ones with some financial security for the future. The money itself could be used for various things including clearing debts or contributing to the cost of a funeral etc. As with any life insurance the policy will only be valid to pay out if the monthly premiums are maintained by the policy holder.
You may consider term insurance or whole of life cover, the main difference between the two comes in terms of when the policy finishes. Term insurance only runs for a specific number of years and pay out comes if you die within that time frame. Whole of life insurance pays out whenever you die-it has no cut off point as such. For this reason, premiums for this time of life insurance are often slightly higher.
People who apply for life insurance will have to engage in exchanging information about their health and lifestyle which is crucial in making sure your broker or life insurance company finds the most suitable cover for you. Whole of life insurance can be a great option for life cover and its biggest benefit comes in the form of a pay-out whenever you die but if you want to pay cheaper premiums it might be better to look into term life insurance.
Carefully choosing your life insurance type and policy length isn’t the only way you could reduce your premiums.
Here are a few tips on how you could help you get cheaper life insurance:
• Non-smokers will have cheaper premiums than smokers-being smoke free for 12 months is often enough for insurers to reduce your premiums
• Reducing your amount of cover could cut costs
• Compare insurers/cover
• Maintaining a healthy lifestyle
• Joint and single policies-some joint policies are cheaper but single policies means you can maintain your cover should something happen to one of you
Whatever life insurance type you choose it’s vital that your cover works well for you. If your premiums are within your budget they will be able to be easily maintained now and in the future. Whole of life insurance is a popular choice for many people but having a look at all of your options will be the best way to gain the most from your money and cover.
Our comparison and quote service is free and simple, for more information about your options give us a call on 0800 6800 205.