It’s not a subject that many of us like to dwell on, but it’s important to think about what might happen if you were to die. If you are married, or have other dependants, it may be a real struggle for these loved ones to continue financially without you. Expenses such as mortgages and bills, unfortunately, cannot be put on hold, which is why choosing to get life insurance can be valuable protection for your loved ones.
This is a type of insurance intended to help loved ones cover the costs of living after the policy holder’s death; claims are paid out as a tax-free lump sum. This money can cover the cost of a mortgage, clear debts, and pay bills or other expenses. These days, Life insurance isn’t just for providing security for your dependants in the event of your death. Policies often now include Serious Illness Cover, paid out if you are to be diagnosed with a condition that has a considerable impact on your lifestyle or ability to work.
Life Insurance typically covers death from illnesses such as cancer, heart attacks, and accidents. Whilst death by suicide or terminal illness diagnosis made during the policy’s term are sometimes covered, it’s always essential to compare different policies as coverage can vary significantly. It’s important to note that pre-existing or chronic conditions usually aren’t eligible for cover, making it vital that you don’t delay, and take out a policy whilst you are still fit and healthy.
Death caused by drug abuse or alcoholism is often ineligible for cover, too, as is death caused by something your insurer deems a high-risk activity. This can mean anything from quad biking to scuba diving, so if these are hobbies of yours, it’s definitely a good idea to compare life insurance policies to see which will offer cover.
Your job can affect your premium, too, with those in certain professions likely to face higher costs. Indeed, you might be surprised to learn that the list of “high risk” jobs does not only refer to military, fire service and police careers: in fact, roles such as bartender, pilot and bus and taxi drivers are also deemed high risk.
When you take out your Life Insurance policy, you will be asked to name your beneficiaries, as well as the amount of cover that you need. This can vary a great deal, so it’s important that you take the time to make a careful estimate of your family’s expenses. These may include the cost of your funeral, mortgage or rent payments (for as many years as necessary), clearing any debts, and paying any regular bills or expenses such as children’s activities or education.
Whilst the higher the amount of cover you need, the higher your insurance premium is likely to be, it’s also vital that you don’t underestimate the costs, and potentially leave your family with ongoing financial struggles should you pass away. Using an independent life insurance comparison website such as Bright Compare can help you identify the best value premiums for your individual needs.
When your Life Insurance policy is calculated, your risk factor is assessed. In addition to high-risk jobs and hobbies, the cost of your policy will be influenced by factors such as your age, health, smoking status, and general lifestyle. It’s crucial that you are completely honest about all of these details, in order to ensure that your family will be able to successfully claim the insurance if they need to.
There are several types of Life Insurance, so make sure that you are clear as to which type is right for you. Life insurance comparison websites such as Bright Compare are an excellent way to see an unbiased account of what each policy can offer.
Level Term Life Insurance
This type of insurance pays out a set amount, as agreed when you take out the policy. It lasts for a specified period (the “term”) and will pay out if you die during this time, provided that you have kept up with your policy payments. You will have to take out a new Life insurance policy once your agreed term ends.
Aimed at those who expect to see fewer expenses as their term progresses (such as completely paying off a mortgage), this cover is cheaper than Level Term insurance. The further into the agreed period that a claim is made, the lower the sum that would be paid out.
This type of Life insurance adjusts your pay-out according to inflation, and the incremental rise in living costs. This means that the sum awarded will increase each year.
Much as the name suggests, this policy period covers the entirety of your life, as long as you maintain the payments. It’s often chosen by those looking to offset inheritance tax payments, and may require a specialist broker.
A single policy which covers two people, typically a couple, this will however only pay out once. The surviving party (usually also the beneficiary) would need to take out a new policy if necessary.
These policies generally pay out set, smaller amounts, intended for expenses such as funeral arrangements. There is the chance that policy holders could pay more in premiums than would be paid out, especially if they live well into old age.
At Bright Compare, we understand that you want to be sure of making the right decision when it comes to choosing a Life insurance policy. Our smart technology makes it easy to compare Life insurance, showing you the options available when you enter just a few details. Our service is totally independent, and keeps your valuable data secure, too, meaning that you can be reassured that you are in safe hands. Why not try Bright Compare today, and let us guide you to the best Life insurance policy for you.
Yes. Whenever you want to take out life insurance, it’s always worth comparing policies. Our smart technology can find quotes in seconds for you. And because we’re completely independent, there’s no bias - just useful information. Start your comparison today.
We use the latest smart technology to find the best life insurance policies for you to compare. It’s quick and easy, and because we’re completely independent, you’ll get impartial results in a matter of seconds. Start comparing with us today.
Life insurance allows you to leave a sum of money to your family in the event of your death. The monthly premium you pay depends on a variety of factors such as age, and the policy you choose. Start comparing with us today.
Your current insurance provider might not be the right one for your circumstances so it's always worth comparing policies. We can help you compare value as well as price and our system can find you potential policies in seconds. Start comparing with us today.
You can still get life insurance if you are ill. Read the policy carefully. Some won’t cover existing conditions, others may. Declare any illnesses up front so you don’t invalidate your cover. We can help you to find quotes. Start comparing with us today.