| More than 150 insurance companies offer | | | | There can be major differences between UK |
| thousands of life insurance products in the | | | | life 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 product | | | | if 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 sense | | | | document carefully and look for some of the |
| guidelines that will help you narrow the | | | | following 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 Cost | | | | throughout the term of your policy. This is |
| | | | opposed to `Reviewable´ premiums which, as |
| The UK life insurance business is highly | | | | the name suggests, are reviewed usually every |
| competitive, but the industry tries to avoid | | | | 5 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 competitors | | | | benefit included. This is a valuable extra |
| so that price is less of a factor in product | | | | which 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 your | | | | terminal 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 Life | | | | your dependants and the risk of inheritance |
| Insurance is the cheapest form of life cover | | | | tax 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 know | | | | your plan. This is a valuable extra which, if |
| exactly what type of cover you require and | | | | you become too ill to work for a number of |
| don't need advice, you can reduce your | | | | months, will ensure your cover continues |
| premiums by applying through a discount life | | | | without you having to pay the premiums. |
| insurance broker such as Life Saver. These | | | | |
| broker's discount the insurance companies | | | | Claims History |
| standard premiums by rebating the majority of | | | | |
| the commission paid to them as an agent for | | | | No matter how good the policy it will all be |
| the company. This reduces your monthly | | | | for nothing if your insurer is difficult or |
| payments below the premium you would pay by | | | | obstructive 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 are | | | | claims and all insurers have procedures in |
| 30-40% higher than for non-smokers. If you | | | | place to process claims on their policies. |
| can or are thinking of quitting you will save | | | | |
| hundreds on your premiums over the term of | | | | Before 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 are | | | | willingness to provide this information and |
| looking for term insurance and critical | | | | the attitude promoted by their response. Do |
| illness, you can make big savings by buying a | | | | they look for reasons to pay claims or |
| combined policy. These only pay out one lump | | | | excuses to avoid them? |
| sum rather than the two that separate | | | | |
| policies would pay, if you suffer a critical | | | | Financial Strength |
| illness and then die. | | | | |
| | | | When selecting or evaluating a UK life |
| Obviously, the cost of monthly premiums is | | | | insurance company, a logical place to begin |
| going to be a major factor in your choice of | | | | is by reviewing the ratings given by major |
| insurer but, it should not be your only | | | | insurance company rating services such as |
| consideration. | | | | Standard & Poors and AM Best. In a rating, |
| | | | the rating company or agency expresses its |
| Product Quality | | | | opinion of the life insurance companies |
| | | | financial condition. |