| More than 150 insurance companies offer | | | | compare like with like and check the small print. |
| thousands of life insurance products in the UK. | | | | This is particularly important if you are including |
| Choosing the right company and right product | | | | extra's such as Critical Illness Cover. Always read |
| from this bewildering choice is challenging. | | | | the Key Facts document carefully and look for |
| Fortunately, there are some common sense | | | | some of the following benefits: |
| guidelines that will help you narrow the field to a | | | | -Are the premiums Guaranteed? This means the |
| more manageable selection of companies and | | | | premiums are guaranteed to remain the same |
| products. | | | | throughout the term of your policy. This is |
| Looking at the Cost | | | | opposed to `Reviewable´ premiums which, as |
| The UK life insurance business is highly | | | | the name suggests, are reviewed usually every 5 |
| competitive, but the industry tries to avoid price | | | | years and can increase dramatically. |
| competition whenever possible. Instead, | | | | -Check that the policy has terminal illness benefit |
| companies attempt to make their products | | | | included. This is a valuable extra which is now |
| sufficiently different from their competitors so | | | | included in most Term Life Insurance policies for |
| that price is less of a factor in product selection. | | | | free and will pay the life insurance amount early if |
| However, there are ways you can keep your | | | | you suffer a terminal illness. |
| premium rates to a minimum without affecting | | | | -Can the policy be written in trust? This will avoid |
| the quality of your cover. | | | | any delay in the money going to your dependants |
| -Consider Term Life Insurance - Term Life | | | | and the risk of inheritance tax being charged on |
| Insurance is the cheapest form of life cover | | | | the benefit. |
| available and premiums are very competitive. | | | | -Can waiver of premium benefit be included in |
| -Shop around - in particular, if you know exactly | | | | your plan. This is a valuable extra which, if you |
| what type of cover you require and don't need | | | | become too ill to work for a number of months, |
| advice, you can reduce your premiums by | | | | will ensure your cover continues without you |
| applying through a discount life insurance broker | | | | having to pay the premiums. |
| such as Life Saver. These broker's discount the | | | | Claims History |
| insurance companies standard premiums by | | | | No matter how good the policy it will all be for |
| rebating the majority of the commission paid to | | | | nothing if your insurer is difficult or obstructive if |
| them as an agent for the company. This reduces | | | | you should have to make a claim.The industry |
| your monthly payments below the premium you | | | | pays out over £166 million a day in pension |
| would pay by applying direct to the insurance | | | | and life insurance claims and all insurers have |
| company. | | | | procedures in place to process claims on their |
| -Stop smoking - premium rates for smokers are | | | | policies. |
| 30-40% higher than for non-smokers. If you can | | | | Before taking out a policy it is advisable to |
| or are thinking of quitting you will save hundreds | | | | contact your prospective insurer and ask about |
| on your premiums over the term of the policy. | | | | their claims history. Note their willingness to |
| -Only pay for the cover you need - If you are | | | | provide this information and the attitude |
| looking for term insurance and critical illness, you | | | | promoted by their response. Do they look for |
| can make big savings by buying a combined policy. | | | | reasons to pay claims or excuses to avoid them? |
| These only pay out one lump sum rather than | | | | Financial Strength |
| the two that separate policies would pay, if you | | | | When selecting or evaluating a UK life insurance |
| suffer a critical illness and then die. | | | | company, a logical place to begin is by reviewing |
| Obviously, the cost of monthly premiums is going | | | | the ratings given by major insurance company |
| to be a major factor in your choice of insurer | | | | rating services such as Standard & Poors and AM |
| but, it should not be your only consideration. | | | | Best. In a rating, the rating company or agency |
| Product Quality | | | | expresses its opinion of the life insurance |
| There can be major differences between UK life | | | | companies financial condition. |
| insurance policies so it is important that you | | | | |