Life Insurance

Guide to buying life insurance

As with many things in life the more time you put into something the more you will get out and with buying life insurance spending some time understanding what to look out for can save you both time and money in the long run and should ensure that you end up with the right cover.

Things to consider:

• Check what existing life insurance you have – Depending on the life cover required you may find that you have life insurance taken out by your employer as part of your benefits package; Some types of life insurance are often sold as an add on to other types of financial service such as banking services. Once you have done this check what you are covered for and what you are not. People don’t often know what exclusions apply until a claim is made.

• Using a Comparison website – Online comparison websites provide a useful and easy way of getting insurance quotes. However for life insurance in our view it makes sense to talk to a specialist life insurance broker to ensure you get the right cover. This is more crucial if you have pre existing medical conditions or you want to place cover in trust.  You should also note that some insurance companies do not appear on comparison websites.

• Using a Life Insurance broker – If you are not sure what cover you need or want somebody to help you through the process there are many life insurance brokers who will be happy to help. A good life insurance broker will not help you in buying insurance but also provide support in the event that you need to make a claim. We use FCA regulated life insurance brokers to help people find the . If you intend to use a broker you can check their FCA registration on the FCA website.

• Providing correct information – In assessing the insurance risk an insurance company will rely on the information that you give as being accurate. Information provided will determine whether insurance is provided and the cost of premiums. It is therefore important that any information you provide is correct e.g. for life insurance factors such as whether you smoke or participate in dangerous sports can have a material impact on the premium you are required to pay. Non disclosure of such information at the time of application can result in a non payout in the event of a claim. If you are using an insurance broker this is where valuable advice can be provided.

• Cheapest is not always best – With life insurance you generally get what you pay for so before you sign up e.g. reviewable life insurance policies where the premium is subject to a review after say 5 years will be cheaper than guaranteed life insurance policies where the premium will not change through the term.

• Changing your mind – You have the right to change your mind within a set period normally 14 days from purchase of the life insurance policy and have your premium returned.