Category Archives: Life insurance

Whole, Universal, and Term Life Insurance: Which One Do I Need?

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Life insurance becomes a bigger priority when you have dependants or money and property to your name. Getting a life insurance policy can help secure your children’s future and ensure your home will be passed down to the right people, with any outstanding debts covered. However, there are many policies out there, all with varying benefits and lengths. So before you commit to one premium, make sure you have researched all your options.

How Could Life Insurance Benefit Me?

Life insurance policies have a range of benefits, including keeping your family, money and home safe and secure after you’re gone.

Pay off your debts
If you have any outstanding debts, your life insurance policy can cover these costs when you die. This ensures that any debts you do have, from credit card bills to mortgages, don’t fall to anyone else. You can then relax knowing that your loved ones won’t be left with any unpaid debts or bills.

Cover funeral costs
Paying for a funeral is a big expense, so having life insurance can cover these costs so your family doesn’t have to. Your policy can cover all of your funeral costs so you have peace of mind knowing that your loved ones won’t have to pay a penny.

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Give your loved ones security
One of the most appealing reasons for taking out a life insurance policy is the financial security it can provide for your loved ones. Whether you have children, a spouse or other dependants, your life insurance policy can ensure that they are taken care of once you’re gone. Your policy could offer your dependants payouts when you die, or you can secure their home, education or other expenses so they have less to pay or worry about. Your life insurance policy can help to replace your income so your loved ones are not left financially insecure.

What Types of Life Insurance Are There?

There are three main types of life insurance. To find out which one is right for your needs and situation, you should look at all your options so you are making the right choice.

Whole Life Insurance
This type of insurance lasts a lifetime so it is a permanent option. When you die, your insurance policy will pay out a cash sum to your beneficiaries. This kind of insurance policy is usually linked to an investment fund. It is right for people looking to provide their dependants with a large payout.

Universal Life Insurance
Similar to whole life insurance, universal policies are also lifetime plans. The main difference between the two types of policies is that a universal plan allows you to adjust your benefits with your policy according to your needs.

Term Life Insurance
Term life insurance is the most affordable and simplest policy. This type of policy isn’t a lifetime commitment, as you can choose to be covered for a specific amount of time. Your term life insurance policy will only cover you until the end of the agreed fixed term, so if you die within the length of your policy, your beneficiaries will receive payout. However, if you live longer than your policy’s term, you wont receive any money back.

How Do I Find the Right Policy?

Consider your budget
When looking at various life insurance policies, don’t forget to consider your budget. You will be expected to pay a premium usually every month, so you need to ensure that you can afford it. You don’t want to take out a term life insurance policy with high premiums to pay each month, leaving you out of pocket, with a risk of not seeing any benefits from your plan. When considering a policy, check how much you will be paying each month so you can make sure it fits within your budget so you are not left with less money for other things.

Look at who will receive the payout
Your beneficiaries are the people who will receive financial help after you’re gone. While you are looking at the premiums and size of the payouts, you should consider who is going to receive the money. You can then work out how much each beneficiary is set to receive.

Compare online to find the best deal
To find the perfect life insurance deal for your situation, you can research and compare all of your options in one place. By using a price comparison website, you can avoid a long search so you won’t miss out on the best deals. By comparing online in one place, you can receive a free quote based on.

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How to Buy Cheap Life Insurance

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We all want what’s best for our loved ones, and even if we’re no longer around, we want to make sure our dependants are cared for. With life insurance you can leave behind money to keep your family financially stable. Some policies are more expensive than others, and it can be confusing when looking at a range of contrasting quotes. Here we can help you find the best life insurance deal, so you don’t have to worry about your budget; you can simply just focus on protecting the people you love.

What are the benefits of life insurance?

Protect your dependants

Getting life insurance will help to keep your loved ones financially comfortable after your death. If you have children or other dependants, it will be a load off your mind to know that you are not leaving them in financial difficulty once your pay cheque is no longer coming in and you can’t provide for them. By having a life insurance policy, your loved ones could continue living in the family home and have enough money to continue covering their living costs, education and transportation. This leaves you feeling stress-free knowing you have your family covered for the long term.

 

 

Tax-free payouts

When you invest in a life insurance policy, you can relax knowing that the payout is normally tax-free. So your loved ones will have access to the full amount of money expected, rather than a taxed amount.

 

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You can cover any debts

If you have any debts, from credit card bills to mortgage payments, you can rest easy knowing your life insurance policy will have that covered. The last thing you would want is for your debts to become someone else’s problem once you’re no longer around. By having life insurance you can ensure that your debts are covered by it, so any outstanding debts will be paid for with your policy when you die.

What will affect the price of insurance?

There are number of factors that will affect how much you pay for life insurance each month. Age is  a big part of how much you will pay. The younger you are, generally the less you will pay each month. If you are a smoker, you will pay more per month in premiums. Where you live, how long your policy is and how much coverage you want will also affect the cost of your life insurance policy.

How can I find cheap deals?

Compare quotes

The easiest and quickest way to finding a cheap life insurance policy is to compare prices online. Price comparison websites are designed to make the process of comparing policies as simple as possible. You begin by filling in the required information; stating which type of insurance you’d like along with some personal information about your age and health. You will then be shown an extensive list of quotes from trusted providers, detailing their policies, benefits, terms and prices. You can take your time comparing quotes before making your decision, ensuring you are finding the best and cheapest deal for your situation.

Don’t be loyal to one provider

If you are looking for a new policy, or to renew an existing one, you should compare all providers before making a decision. Switching insurance providers once a policy has expired is simple and stress-free when you compare prices to find a better deal elsewhere. Don’t be pressured into staying with a company if you think you can save money on another policy.

 

Give up smoking

Smokers tend to pay more in premiums as they are seen as more high-risk to insurers. If you quit smoking, you could see the amount you pay each month for insurance drop. So quitting smoking will be beneficial for both your health and your wallet.

Look for bundles

Although you shouldn’t necessarily take out a policy with an insurer because you already have another type of insurance with them, it could be worth seeking money-saving bundles and package deals. There are some insurers that will allow you to bundle your life, home and car insurance together, which will help you save money in the long run.

Stay healthy

If you want to get a cheap deal, you are more likely to succeed if you are healthy. People who are healthy with no pre-existing medical conditions can expect to pay less than people who are unhealthier. Keeping yourself healthy isn’t just great for your body, but also for your finances.

Don’t wait

The sooner you take out life insurance, the cheaper it will be. Premiums rise with age, so the older you are, the more you will be paying each month. Although many people in their twenties won’t think to consider life insurance, it could be an affordable investment, as it will likely cost half the price than if you took out the same policy at forty years old.

Choose the right type of insurance

There are two main types of life insurance policies, so it’s best to research them fully before committing to a policy. There is term life insurance and whole life insurance.

Term life insurance is the most affordable option between the two. With this type of policy, you pay a premium every month during the coverage period. The policy only lasts a certain amount of time, so if don’t die during your policy’s time frame, the coverage will expire and you will have to renew.

Whole life insurance is the permanent option. It allows you to be covered for the rest of your life. When you die, your dependants will get a payout. This is the more expensive policy option, but you can rest assured that your premiums are fixed so you will pay the same amount of money each month.

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Should You Renew Insurances Automatically

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If you have taken out an insurance policy, you may lose track of time and forget when your deal ends. If you miss any reminders sent by your insurer, you may end up in a bit of a sticky situation.

Car insurance in particular is always required if you are currently driving, so missing a renewal date could mean you’re off the road until it’s sorted. This is why many people choose to have their insurance policies renewed automatically.

So, if you have taken out a car insurance policy, you can choose to allow to auto-renew when it comes to an end. This could take the pressure off you so you don’t need to worry about forgetting and being without insurance. Some people may be too busy to keep tabs on renewal dates, or are not easily reached by insurers, so an automatic renewal could be just what they need to stay in control.

However, there are some insurers who take this decision into their own hands, and instead of contacting you to let you know your policy is about to expire, may start up a new policy without your consent. This could be helpful for some people who are happy with their current insurance and provider, but may prove to be problematic for others who are instead looking for a change or were not expecting it. It could leave you with unexpected monthly payments being made, which could leave you with less money. Or you could have already picked a new policy to switch to, resulting in two insurance policies to your name, meaning double the cost and double the hassle.

 

How do you renew insurance policies?

Your insurer will send you a renewal notice around one month before your policy is due to expire. This gives you enough time to make an informed decision and allows you to compare prices from other companies, and to speak to your current insurer about price negotiations.

You can then either choose to renew your policy with your insurer, or you can decide to switch to another insurance provider with a better deal.

 

 

What are the advantages of auto-renewal?

It saves you the hassle of shopping around

For some people, spending a long time comparing policies and prices can feel like a nightmare. If shopping around isn’t up your street, auto-renewal could be just what you need. It takes away the stress of searching for new coverage so you can focus on other things. You won’t have to worry about spending a long time online, searching for cheaper premiums, and can instead take an easy route by allowing your insurer to do all the hard work. If you are not interested in hunting down a better deal through price comparison websites, automatically renewing your insurance policy could be the right fit for you.

 

It doesn’t allow you to be without insurance

If you choose to have a policy with an automatic renewal, you are less likely to end up with no coverage. You may have lost your letter from your insurer about your upcoming renewal date, or you may have too many other things on your mind to remember to renew or switch. This could mean that a policy with automatic renewal could be beneficial, to ensure you are never without insurance. The last thing you want to discover during a routine traffic stop is that your car insurance ran out weeks ago. With a guaranteed auto-renewal of your policy, you won’t have to worry about that happening.

 

What are the disadvantages of auto-renewal?

You can’t compare other options

With auto-renewal policies, you are unable to take the time to compare quotes from other companies. You are simply going from one policy to the next with the same insurer, potentially leaving you worse off financially. You could find a much better deal elsewhere than what you are currently getting, and all it would take is a short time comparing your options on a price comparison website. You can look at all of the current deals from various trusted providers, and pick one that works for you and your budget.

 

You may end up with double the coverage needed

If you are unaware that your insurance policy is being automatically renewed, you could end up with twice the amount of coverage at a high cost. Your insurer may not have informed you that your policy will be renewed automatically, so you could have already agreed to take up cover elsewhere. This means that when you think your current coverage will expire, making room for your new insurance policy, you end up with two payments coming out of your bank account and fast action needs to be taken to ensure you don’t pay any more than is necessary.

 

It could affect your credit

You may end up paying a premium you weren’t expecting if your provider automatically renews your coverage, which could have dire effects on your credit report. If you change addresses in between paying your last premium and your new unexpected coverage payment, it could end up hurting your credit by leading to a ‘default’ on your report. This could make it very difficult for you to get credit at a later date. This also applies if you have changed to a new debit or credit card since your last expected insurance payment. The first unexpected payment on your automatically renewed policy may try to come out of a cancelled or unused bank account, negatively affecting your credit.

 

Some auto-renewal policies may be unreliable and leave you without coverage

If you have set up an auto-renewal insurance policy, you may not even notice when your current coverage is coming to an end. Since you expect it to renew without your interference, you may simply put it out of your mind. However, a coverage provider might not always be the most reliable, so you could end up with no automatic renewal, and subsequently no insurance at all. If you do choose an automatically renewed policy, ensure that you are aware of its end date to keep an eye on future payments.

 

Unexpected payments could leave you financially fraught

When your policy comes to an end, you won’t be expecting any further payments. However, if an insurer sets up an auto-renewal policy without your knowledge or consent, you may end up making payments you are unprepared for. This could leave you in a financially difficult situation, with less money than you had planned after the unexpected payment. You could also be charged a cancellation fee by your insurer if you choose to cancel your policy, which is more money you were not planning on spending.

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