How to compare life insurance quotes

Although there’s other more exciting things to talk about, there's no doubt that life insurance is 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. Thanks to the internet, it’s never been easier to arrange and compare life insurance quotes online.

Over the years, online 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.

The Cavendish Online team is 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.

Why apply for life insurance?

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.

You can’t rely on the government to take care of your family. In fact, the money they would get from the state is probably much lower than you’d expect.

How much life insurance do I need?

To understand the amount of cover you need, it’s important to take on board your individual circumstances. This can include savings, mortgages and existing credit arrangements in place.

Everyone’s situation is different, as is the type of protection you need. This can depend on your personal situation and what stage you are in life. Your age, health in general (including if you smoke) and lifestyle are just a few factors that are considered when applying for cover, and how much your monthly premium (payment amount) will be.

The 2 main types of life insurance cover are 'term' life insurance and 'whole life' insurance.

‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy). The policy only pays out if you were to die during the policy term. There’s no lump sum payable at the end of the term.

Term life insurance has 3 levels of cover:

• Level term - the standard type of term life cover.
   

• Increasing term - The payout of the policy increases over time to protect the value from inflation.
   

• Decreasing term - used to cover large payments like a mortgage. The payout value decreases over time as you make repayments.

‘Whole 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 wish to leave some form of inheritance to your family. It can also be used to help with your funeral costs.

Naturally, these policies are typically more expensive than term life policies. As long as you keep paying your premiums, the insurer will always have to pay out. Whereas with a term life policy, you may outlive the policy term.

TIP: Whole 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). 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 with life insurance cover 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.

For the best rate and policy, shop around

At what age should I get life insurance?

When it comes to life insurance, there is no one-size-fits-all answer as to when you should get it. The best time to purchase a policy will depend on your individual circumstances and needs. Generally speaking, the earlier you start, the better.

If you’re young and healthy, now is the perfect time to look into life insurance, as premiums tend to be lower for young people. However, if you are older and have existing health issues, it may be more difficult to find an affordable policy.

No matter what your age, it’s important to shop around and compare policies from different providers to ensure you get the best deal.

How much does life insurance cost?

The cost of life insurance depends on a variety of factors, such as your

• Age - the younger you are, the lower your premiums will be

• Health & medical history - if you have any pre-existing medical conditions, this may affect your premiums

• Lifestyle - certain activities, such as smoking, can increase your premiums

• Amount of coverage - the more coverage you need, the higher your premiums will be.

• The type of policy you choose - whole life insurance policies tend to be more expensive than term life insurance policies.

Ultimately, the cost of your life insurance policy will depend on your individual circumstances and needs. It’s important to shop around and compare different policies from different providers to ensure you get the best deal.

Get a quote online

To understand how much life cover 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 easy to arrange and compare cheap life insurance quotes online. Simply enter your details, 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.