When shopping for life insurance, there are many factors to consider. The type of cover you need, the amount of cover you need, and whether you're buying term or permanent insurance are just some of the questions you should ask yourself when comparing life insurance quotes.

In this article, we'll look at how to get the most out of life insurance, and how you can get the best rates for cover...

Understand your options

Life insurance cover is a vital part of any financial plan, and it’s important to know what you can expect from your policy before deciding to purchase one. The first step in finding the right life insurance policy for you is to compare different policies side by side. This will help you find out which type of policy best fits your needs and budget.

There are several different types of life insurance, such as...

Whole life insurance

Whole life insurance - sometimes known as life assurance - is a type of policy that provides a cash lump sum to your loved ones when you die. It's designed to protect your family for the foreseeable future, paying out no matter when you die. During this time, both the cost of your monthly premium and payout value remain fixed.

As with any type of insurance, however, you have to make regular payments throughout your lifetime to maintain cover. Due to the guaranteed pay out, premiums for whole life cover are often costly, making them more expensive than other types of cover.

Term life insurance

Term life insurance differs significantly from whole life insurance, as it doesn't provide permanent cover. Rather, it protects against death during a specific period of time (for example 30 years). Although it is often the cheapest type of cover, if you live beyond the policy term, you won't receive any kind of payout. Instead, the plan is designed to cover you and your loved ones during a time where they could be vulnerable without you. I.e., while there’s still a mortgage to pay or children to raise.

Joint life insurance

If you're married or living together with someone else, joint life insurance may be an option worth considering. With this type of cover, you and your partner are protected under a single policy. If either partner dies, the survivor will receive a payout. This could be used to replace lost income, pay off a mortgage or for anything else your loved ones might need if you pass away.

Critical illness cover

Critical illness cover provides you and your family with a one-off lump sum if you are diagnosed with a serious illness, injury or disability. 

Each insurer has their own list of critical illnesses that are covered by their plan, so be sure to do your research to get the plan that’s best for you. Alternatively, you could speak to an adviser if you would like someone to give you a recommendation based on your personal circumstances.

Get life insurance online...

Work out how much cover you need

If you're pondering getting life insurance, one of the most crucial factors is figuring out how much cover you need. To do this, you should consider your current financial situation and how your death would impact your family's finances.

Life insurance helps your loved ones cover the costs of financial commitments, including:

Be careful not to over-insure, this can lead to you paying higher premiums for more cover than your family needs. If you are mostly responsible for your family's monthly income, they'll likely need a higher amount of cover. However, if your partner or spouse earns enough income to cover their monthly costs, you may not need as much cover in place to help them should you pass away

You should weigh up payments made in your name, such as a mortgage, household bills, childcare, loans or credit cards. Should you die, your family will need to carry out payments to maintain their lifestyle and potentially to remain in the family home. . If you're unsure about how much cover you need, check out: How much life insurance do I need?

Need to speak to an expert insurance adviser?

Shop Around For the Cheapest Policy

If you're looking for cheap life insurance, shop around for quotes online. There are many companies out there offering affordable policies. But be careful when shopping for life insurance, because not all companies offer the same cover.

Some plans only cover death benefits, others only cover critical illness or , and some offer both. Most insurers will require you to pay a monthly premium, while others allow you to pay premiums annually.

Some factors can determine the cost of your life insurance premiums, such as:

If you're looking for cheaper life insurance premiums, there are a few things you can do, including:

  • Apply for cover when you are young - this is when life insurance premiums are typically the cheapest. As you get older, the cost of life insurance increases due to the risk of developing medical conditions, or worse, death.

  • Quit smoking - If you are a smoker, your premiums are likely to be higher than non-smokers. Depending on the insurance provider, you may be able to reduce your premiums if you manage to stay smoke-free for 12 months or longer.

Life insurance from leading brands

  • Zurich
  • Legal And General
  • Aviva
  • AIG
  • Beagle Street
  • LVE
  • Royal London
  • Vitality Life
  • Virgin Money
  • Budget Insurance
  • Scottish Widows

Compare life insurance policies through an independent broker

If you're looking for life insurance, you've come to the right place. At Cavendish Online, we compare hundreds of different policies every day. We aim to help customers save money by helping them find the best policies with affordable premiums. Apply for life insurance today to give your family the peace of mind they deserve.

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