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How to Compare Life Insurance Quotes

Last updated: 14/11/2022 | Estimated Reading Time: 8 minutes

In the age of the internet, it’s never been easier to compare life insurance quotes. With the click of a button and a simple Google search, it’s possible to find hundreds of providers all claiming to be the best, cheapest, or most comprehensive solution for your needs.

But if you’ve been alternating between two, 10 or even 35 life insurance policies, you might be questioning whether too much choice can be a bad thing. In reality, it’s not the availability of life insurance policies that’s the problem, but rather the overwhelmingness that comes with being faced with so many options.

This feeling pushes some people into making a decision that may not be right for their needs, simply because they lack the tools and understanding needed to effectively compare life insurance quotes.

In this guide, you’ll learn why comparing life insurance is so important and how to use having too much choice to your advantage. This will hopefully lead to your next life insurance policy being the right one for your long-term needs.

In This Guide:

How does comparing life insurance work?

If you’re at the very beginning of your life insurance journey, you can get started with a life insurance comparison website. After answering a set of questions, you’ll be matched with quotes from various life insurance providers across the UK. You’ll be able to compare and contrast these quotes to find a policy that best suits your needs.

Why it’s important to compare life insurance

Many first-time life insurance buyers assume that all policies offer essentially the same thing. However, this couldn’t be further from the truth. Every life insurance policy caters to a slightly different audience - the challenge lies in figuring out whether that audience is you and whether your chosen provider truly understands your needs.

Simply choosing the cheapest life insurance quote you’ve received or signing up with the provider that’s been around the longest won’t guarantee you’re going to get the best level of service. Because life insurance is such a long-term commitment and will impact the lives of your nearest and dearest, it’s important to find a policy that will offer them the most protection while still staying within budget.

How to evaluate a life insurance policy and compare quotes

The best life insurance comparison strategy is multifaceted. This means you will need to evaluate every quote on your list using a combination of factors rather than relying on price alone. It’s easy to filter quotes by the cheapest to the most expensive, but making a spreadsheet that takes into account all of the following elements will give you a much better chance of making an informed decision.

Determine how well a policy meets your needs

Before you buy life insurance, you need to make sure it meets your needs. However, this requires you to understand exactly what your needs are and which type of life insurance is best suited to delivering the results you expect. 

For example, not all life insurance covers your funeral costs, while others will become void if you fail to inform your provider of any pre-existing medical conditions. You will also need to decide if you want your life insurance to cover you for your entire life, or simply until your children are all adults.

Everyone’s personal circumstances will be different, but understanding some of the different types of life insurance is key to comparing quotes. Here are some that you should be aware of:

  • Critical illness cover: Life insurance usually only pays out after your death, which doesn’t help you and your family if you’re affected by a serious illness such as a stroke, heart attack or cancer and are unable to work. Critical illness cover can provide you with a certain amount of money to support both you and your family while you’re still alive.
  • Family income benefit: Some life insurance policies offer a lump sum of money rather than a regular income. Family income benefit will ensure that your family will receive money every month over a specific period of time (depending on the policy details). This is something to consider if you are the main earner in your family.
  • Joint life insurance: Couples often benefit from taking out life insurance cover together, regardless of whether they are married. You may enjoy lower costs than if you were to take out multiple life insurance policies separately.
  • Mortgage life insurance: If you have a mortgage, this type of life insurance can allow your dependents to remain in their home by paying off your remaining debt.

Consider life insurance cost

Life insurance costs can vary significantly, which is why it’s so important to be clear on how much cover you need. Opting in for unnecessary extras or taking out cover for longer than you’ll need is a surefire way to increase your monthly payments.

So, does that mean you can go for the cheapest policy that meets all of your requirements? In theory, yes, but you must be sure that the policies you’re comparing are in fact identical. For example, while saving three to four pounds a month is an attractive prospect, if it greatly reduces your family’s payout after your death, is it really worth the extra savings?

If you really are on a tight budget, there are certain things you may be able to do to secure cheaper life insurance without compromising on your policy. These include:

  • Taking out a policy as soon as possible (younger people typically enjoy lower premiums)
  • Improving your lifestyle and becoming healthier e.g. by giving up smoking
  • Shortening the term of your life insurance

Never hesitate to contact an insurance provider about the quote you’ve received to see if it can be lowered before writing off the policy completely.

Don’t dismiss the provider

Your life insurance provider can be just as important as your life insurance policy. While it’s the policy itself that makes up the legally binding agreement, partnering with a life insurance provider that offers poor customer service, doesn’t communicate effectively, and fails to inform you of exclusions and cancellation policies can make the whole process much more stressful.

Before agreeing to a quote and signing up for a policy, read some customer reviews about the life insurance providers you’re considering. Pay attention to whether users report that it was easy to change their policy when needed or whether they had trouble making life insurance claims after the death of a loved one.

Finding an understanding and conscientious provider can make all the difference to your bereaved family, so think carefully about how your chosen insurance company communicates with you when you’re signing up for a policy.

Read policy documents carefully

When you’ve finalised your decision down to the last few quotes, you should go over any policy documents with a fine-tooth comb. Policy summaries rarely give you all the details you need to know, especially when it comes to conditions surrounding life insurance payouts. 

Even policies that cover deaths that arise from high-risk activities may have exclusions that are important to be aware of before taking out cover. You may also find that your insurance premium could increase after a number of years, or as a result of a deterioration in your health.

If you do find certain clauses or exclusions in your life insurance policy documents, raise them with your provider. It may be that they can change your policy or renegotiate your monthly charge to better suit your needs.

Find the best life insurance in UK

The best time to compare life insurance is sooner rather than later. Even if you don’t need life cover immediately, getting a quote and discussing your future needs with one of our experts can help you to find a better deal. Whether you’re looking for level-term life insurance or need a policy that takes into account your complicated medical history, here at Money Expert, we can help.

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