There are many websites claiming to be able to provide the cheapest life insurance. They will not provide advice and should only be used if you know exactly what Life Insurance cover and type of policy you want. If you are not sure about the amount of cover you need you should obtain advice from a Financial Planning adviser.
This article is intended to help you find a Life Insurance policy and take you through the process of buying it on line.
Which website do I use?
The best way to find the cheapest Life Insurance quote is to use one of the many comparison websites. These websites will take your basic details and obtain quotes from the major Life Insurance companies.
When the various quotes are displayed, you should be given details of the monthly premium and the company providing the quote. There will often be the opportunity to review the policy summary before you proceed to the application stage.
Why read the policy summary?
The policy summary will give you details of the cover provided, the terms used and details of any exclusions. Reading about the exclusions is especially important if you are thinking about buying a policy that does not require large quantities of medical information or is advertised as “guaranteed acceptance”.
Applying for the policy
If you use a comparison website, you will usually be taken to the Life Insurance company’s website to actually apply for the policy. You will usually be asked for a lot of personal information and medical history, so make sure that it is a secure website. There should be a padlock showing at the bottom right hand corner of your screen. Alternatively web page address starts with https://. If neither applies leave the web page before you have given any personal details.
Is the medical information important?
The medical information is extremely important. If you do not tell the insurance company about an illness or condition, in the event of your death they could refuse to pay out the life insurance. If you die of, say, a heart attack and have not told them about heart problems that you have been diagnosed with, the policy can be cancelled on your death and nothing paid out.
What happens next?
The Life Insurance company will decide, based on your answers to the medical questions, whether to issue a policy immediately or ask for additional medical evidence. Every Life Insurance company has its own set of rules about the amount of cover it will offer without requiring further medical evidence.
If the Life Insurance company requires additional medical evidence it will ask your doctor for information and in some cases ask for you to have a medical examination. Once the additional evidence has been obtained it will make a decision and issue a policy document.
The policy documentation.
In addition to the policy summary, there is a formal policy document sent to you which should be read carefully. Included with the policy document is an illustration that details the amount of Life Insurance, the term, the monthly/annual premium and the total amount you will pay for the cover.
Can I cancel the policy if I decide not to continue with it?
All Life Insurance companies are required to give you the opportunity to cancel a policy within a set time and receive a refund of the premiums paid.
This article is for guidance only and must not be construed as advice. The contents of this article are aimed at the UK market, although many countries will have similar policies available. If you need advice you should refer to a Financial Adviser.