Thanks to the wonders of the internet, it’s never been easier to arrange and compare life insurance online. Over the years, life insurance brokers and insurers have streamlined their application processes, so nowadays, it can take as little as 20 minutes to get life insurance cover online.
Whatever stage of life you’re at, there’s a variety of options and policy types available to suit your needs. Do keep in mind though, that it’s important to choose the right policy for your individual needs, as choosing the wrong policy (or not understanding the policy) could leave you underinsured.
In essence, 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 them 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.
At Cavendish, we’re committed to providing our customers with all the information they need to make an informed choice about what kind of policy will be right for them.
Work out how much cover is needed
To apply for the type of life insurance you need, it’s important to take on board your individual circumstances, like savings, mortgages and existing credit arrangements in place. As everyone’s situation is different, so is the type of protection you’ll need - depending on your personal situation and what stage you are in life.
Understand your budget
While life insurance is a great way of providing your family with financial support during difficult times, you need to make sure you can afford it. Should you be unable to make your monthly payments, your insurer may choose to end your cover early. In this case you won't receive any money back from the premiums already paid.
Your age, health in general (including if you smoke) and whether you’re married are just a few factors that will be considered when applying for cover - determining how much your monthly premium (payment amount) will cost.
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The two types of life insurance policies you’re most likely to come across are ‘term' life insurance (the more basic form of life insurance) and ‘whole' 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.
Term life insurance has 3 types of cover:
Level term - the standard type of term life cover. Both the cost of your monthly premiums and pay out value are fixed throughout the policy term.
Decreasing term - Can also be known as mortgage life insurance, and is used to cover large payments your family would struggle to pay off alone. The payout of the policy decreases over time as you make repayments.
Increasing term - In order to protect the policies value, the pay out amount increases over time. However, your premiums can also rise as a result of this.
With a ‘whole-of-life’ insurance policy, the clue is in the name. Unfortunately, we all die one day, so as this policy is ongoing, it will pay out a lump sum whenever that day comes.
As you’d imagine, these policies are typically more expensive than term life 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.
There is also joint life insurance- this can cover two people under a single policy. Many couples opt for this type of cover, as it can be easier to manage and cheaper than buying separate policies.
For the best rate and policy, shop around.
Unsure on which type of policy is right for you? Speak to the Cavendish team over the phone or live chat, and we’ll be able to give you all the information you need to help you decide what’s best for you. We can help you find the best life insurance quotes for you, as we won’t limit your search to just one company.
Call for a quote today...
Our team of expert protection consultants are here to help. Call for a quick quote and more information now:
(Monday to Friday, 10am to 6.30pm)