How to Choose a Life Insurance Company

Finding the perfect insurer can be difficult. With so many insurers out there, it can be hard to know where to look. But before you search for your new life insurer, you need to do your homework.

While you'll want to have financial protection in place as soon as possible, it's worth slowing down to make sure you get the best deal. Here are a few ways to help you find your ideal life insurance provider...

Get Quotes From Multiple Insurers

It's never fun to shop for life insurance, especially since there are so many companies offering different types of policies. But it's necessary to compare quotes from multiple Insurers to find the policy that fits your needs.

When you compare rates, you'll notice that Insurers offer different benefits and features. Some companies offer discounts for certain types of cover, while others offer additional perks like cash value options and store/product discounts.

Check Customer reviews

There are plenty of life insurers out there, but finding the ones that offer the best services can be difficult. Fortunately, there are several resources available online, such as customer reviews. These allow customers to share their experiences with different companies. 

Such sites provide valuable insight into what consumers should look for in an insurer, including pricing, claims processing, and customer support.

One of the best places to read reviews is Trust Pilot  - this covers a wide scope and offers unbiased opinions. This is especially helpful if you're considering switching insurers at any point in the future. There are also plenty of online review sites that compare insurance companies based on rates, products, features, and customer satisfaction.

Do Your Homework

If you're looking for life insurance, there are several questions you should ask yourself before selecting an insurer. Here are some things to consider when shopping for life insurance.

What type of cover do you need?

There are two main types of life insurance coverage: term and whole life insurance.

Term life insurance covers the policyholder for a set period of time (for example, 25 years). The policy pays out a lump sum, providing you die within the agreed policy term.

Whereas, whole life insurance protects you for the remainder of your life (as long as you continue to pay your monthly premiums). Whole life policies are often expensive, however, they provide your loved ones with peace of mind for the future ahead.

Do you need extra protection?

Many life insurance policies allow you to include optional extras, which can be really useful depending on your situation:

• Critical illness cover pays out a lump sum if you’re diagnosed with a serious illness specified in your policy, helping cover bills, treatment costs, or lost income.
   

• Income protection provides a replacement income if you’re unable to work due to illness or injury. This can be arranged alongside your life cover or as part of a package, giving extra financial security for you and your family.

These add-ons aren’t mandatory, but they can be a cost-effective way to broaden your protection without taking out separate policies.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

If you experience financial difficulty and can no longer pay your premiums, please contact your insurer before cancelling your policy and before it lapses automatically as they may have options available to stop you losing the plan.

Can I afford the policy?

The cost of life insurance varies depending on your age, health, occupation, and smoking status, and the level of cover you choose, among other factors.

Before you apply for life insurance, your insurer will provide you with a quote. This is an estimation of how much your monthly premiums will be.

To receive a definitive premium, you can apply for the policy and undergo any steps the insurer asks of you - e.g., a medical form, nurse screening or GP report. This is called underwriting.

How much life insurance cover do I need?

To determine how much cover you need, think about how your death will affect your family's income. Consider what finances your family may need support with - financial commitments, such as living expenses, mortgage repayments, funeral costs and more.

How do I cancel my policy?

Some insurers will allow you to cash in or cancel your policy. In this instance, a penalty will occur, meaning you'll receive much less than the original payout value states.

However, most life insurance policies do not have a surrender value, meaning that once cancelled, you simply lose the cover and receive no payout. For this reason, it’s probably best to chat to your insurer before making your decision.

Please note that if you were to cancel within 30 days of the plan starting, you may be eligible for a refund on any premiums you have paid so far.

Learn if you are eligible for life insurance

Before applying for a life insurance policy, make sure that you meet the policy's requirements. For example, if you are a smoker or have medical conditions, some insurers won't accept you for cover. Or if they do, premiums may be significantly higher.

Most life insurance companies will ask you to fill out a health questionnaire to determine if you are eligible. Others may require you to undertake a medical exam to determine if you are healthy enough to be covered. You can usually learn if you are eligible by checking the insurer's terms and conditions.

Buy through a discount broker

To simplify the process, you can buy through a discount broker like Cavendish Online. We provide clear, transparent fees and access to multiple leading insurers - so you know exactly what you are paying for when you buy through us.

We aim to provide the cheapest options for buying life insurance cover, with 3 routes to apply. With our online quote service, you can compare rates from the UK's leading insurers in minutes.

Or if you need advice, our advisors can provide all the information you need. Our team is ready to help you make the right decision, taking into account your needs and those of your family. Speak to an advisor to learn more.