Your ultimate insurance guide


Tips for Choosing a Life Insurance Company

More than 150 insurance companies offerThere can be major differences between UK
thousands of life insurance products in thelife insurance policies so it is important
UK.that you compare like with like and check the
small print. This is particularly important
Choosing the right company and right productif you are including extra's such as Critical
from this bewildering choice is challenging.Illness Cover. Always read the Key Facts
Fortunately, there are some common sensedocument carefully and look for some of the
guidelines that will help you narrow thefollowing  benefits:
field to a more manageable selection of
companies  and  products.-Are the premiums Guaranteed? This means the
premiums are guaranteed to remain the same
Looking  at  the  Costthroughout the term of your policy. This is
opposed to `Reviewable´ premiums which, as
The UK life insurance business is highlythe name suggests, are reviewed usually every
competitive, but the industry tries to avoid5  years  and  can  increase  dramatically.
price competition whenever possible. Instead,
companies attempt to make their products-Check that the policy has terminal illness
sufficiently different from their competitorsbenefit included. This is a valuable extra
so that price is less of a factor in productwhich is now included in most Term Life
selection.Insurance policies for free and will pay the
life insurance amount early if you suffer a
However, there are ways you can keep yourterminal  illness.
premium rates to a minimum without affecting
the  quality  of  your  cover.-Can the policy be written in trust? This
will avoid any delay in the money going to
-Consider Term Life Insurance - Term Lifeyour dependants and the risk of inheritance
Insurance is the cheapest form of life covertax  being  charged  on  the  benefit.
available  and premiums are very competitive.
-Can waiver of premium benefit be included in
-Shop around - in particular, if you knowyour plan. This is a valuable extra which, if
exactly what type of cover you require andyou become too ill to work for a number of
don't need advice, you can reduce yourmonths, will ensure your cover continues
premiums by applying through a discount lifewithout  you  having  to  pay  the  premiums.
insurance broker such as Life Saver. These
broker's discount the insurance companiesClaims  History
standard premiums by rebating the majority of
the commission paid to them as an agent forNo matter how good the policy it will all be
the company. This reduces your monthlyfor nothing if your insurer is difficult or
payments below the premium you would pay byobstructive if you should have to make a
applying  direct  to  the  insurance company.claim.The industry pays out over £166
million a day in pension and life insurance
-Stop smoking - premium rates for smokers areclaims and all insurers have procedures in
30-40% higher than for non-smokers. If youplace  to  process  claims on their policies.
can or are thinking of quitting you will save
hundreds on your premiums over the term ofBefore taking out a policy it is advisable to
the  policy.contact your prospective insurer and ask
about their claims history. Note their
-Only pay for the cover you need - If you arewillingness to provide this information and
looking for term insurance and criticalthe attitude promoted by their response. Do
illness, you can make big savings by buying athey look for reasons to pay claims or
combined policy. These only pay out one lumpexcuses  to  avoid  them?
sum rather than the two that separate
policies would pay, if you suffer a criticalFinancial  Strength
illness  and  then  die.
When selecting or evaluating a UK life
Obviously, the cost of monthly premiums isinsurance company, a logical place to begin
going to be a major factor in your choice ofis by reviewing the ratings given by major
insurer but, it should not be your onlyinsurance company rating services such as
consideration.Standard & Poors and AM Best. In a rating,
the rating company or agency expresses its
Product  Qualityopinion of the life insurance companies
financial condition.



1 A B C D 60 61 62 63 64 65 66 67 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111