Although there are other far more exciting things to talk about, there’s no doubt that life insurance is certainly an important thing to consider. Whatever stage of life you’re at, there’s a variety of options and policy types available to suit your needs and thanks to the internet, it’s never been easier to arrange and compare life insurance policies online.
Over the years, life insurance brokers and providers have streamlined their application processes, so nowadays it can take as little as 20 minutes to set up a policy online. However, choosing the wrong policy or not understanding your life insurance policy could leave you underinsured.
Cavendish are committed to providing our customers with all the information they need to make an informed choice about what kind of policy is right for them.
If your children, partner or other family members depend on your income to cover their living expenses and the home they live in, you should definitely consider life insurance to help provide for your loved ones in the event of your death. You can’t rely on the government to take care of your family – the money they would get from the state is probably much lower than you’d expect.
The 2 main types of life insurance are 'term' life insurance and 'whole-of-life' insurance.
‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) eg. 10, 15 or 25 years - but only pay out if you were to die during the term of the policy. There’s no lump sum payable at the end of the term.
‘Whole-of-life’ insurance policies pay out regardless of when you die, as long as you keep up with your premium payments. This type of cover is typically of interest if you are determined to leave some form of inheritance to your family, or if you want to help with your funeral costs.
Naturally, these policies are typically more expensive than term insurance policies since as long as you keep paying your premiums, the insurer will always have to pay out, whereas you may outlive a term insurance policy.
TIP: Whole-of-life insurance is also known as life assurance by many insurers.
Bear in mind, life insurance usually only covers death. If you can’t provide for your family because of illness or disability, you typically won’t be covered. However most life insurance policies provide a terminal illness benefit or have an option to add critical illness cover. A terminal illness benefit will pay out on diagnosis of a terminal illness (that meets your provider's definition) and critical illness cover is designed to cover you in case you get a specific type of life-changing condition (again, which meets your selected provider's definition).
Many people who have a life insurance policy in place tend not to review it very often, however, it’s important to understand if the policy still meets your needs (as well as finding cheaper life insurance) - that’s where Cavendish can help.
If you’re not sure, speak to us over the phone or through live chat, and we’ll be able to give you all the information you need to help you decide what’s best for you.
Get a quote online
To understand how much life insurance you’ll need, keep in mind how comfortable you’d want your loved ones to be if you were no longer around. Many of our customers want to make sure debts are covered (such as a mortgage) to give financial protection to your family if you were to pass away.
Once you’ve given this information some thought, it’s then really easy to arrange and compare low cost life insurance online. Simply enter your details into our site and we’ll ask some questions to generate quotes so you’ll be able to see what policy works out best for you.
Prefer to call?
Sometimes, it’s easier just to pick up the phone and speak one-to-one with one of our insurance specialists, who can guide you through the process and support you in choosing the best cover for you and your family.