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Top Tips on How to Find the Best Life Insurance

Last updated: 16/02/2024 | Estimated Reading Time: 9 minutes

When you’re enjoying the best years of your life, it can be daunting to have to plan ahead to help others if the worst should happen. But nevertheless, finding the best life insurance policy is one of the most important things a person can do.

But with so many variables to consider, and so many options to choose from, how are you going to compare life insurance policies to find that perfect policy that’s secure, convenient and cost-effective?

Below are our top tips for making the process of finding the best life insurance smoother, less stressful, and more focused on protecting what matters most - you and your loved ones. 

In This Guide:

Asking Yourself the Right Questions

Finding the best possible life insurance requires the ability to look beyond your own life at the long-term picture, while also viewing each choice with a little more introspection. 

Whether you choose to do so alone or discuss these matters with your loved ones, it’s helpful to ask yourself the following questions before pursuing your options any further: 

Who or what am I looking to protect with my policy?

Should you unexpectedly pass away, are you eager to help your loved ones financially? Perhaps it’s a business partner that you want to protect? It’s important to pinpoint exactly what you want coverage for. 

How long do I plan on having life insurance? 

This is a tricky question to answer, especially when you’re expected to take your current financial obligations into account, while also considering the financial futures of your beneficiaries. But if you’re able to look at your mortgage payments, funeral expenses, retirement funds, and other variables, you’ll have more insight into how long you’ll need coverage, and which policy can provide you with it. 

What do I need to be guaranteed in my policy?

Whether it’s a straightforward level term policy or a policy with a premium that changes over time (more on these kinds of life insurance policies below), you need to be certain of what’s guaranteed within the timeframes of your terms. Are you looking for something more regular than a lump sum payment? If so, then a family income benefit option may be best for you.

Will the premiums be manageable for me? 

No one should sacrifice their quality of life to maintain their premium payments. That’s why finding a policy that suits your coverage and lifestyle needs is essential. You may want the lifetime protection of a whole-of-life policy, but it’s no good to you if the policy lapses due to unpaid premiums. Take the time to find the best deal possible, for both your finances and your family’s future. 

Using these Answers to Help Find the Right Life Insurance Policy

Your answers to the above questions can narrow down your search and determine what the best life insurance policy will be for your specific needs. 

As we’ve mentioned previously, the majority of life insurance policies will have set terms that are clearly defined and agreed upon beforehand. In other words, you won’t be entitled to a claim once that term has ended, even if you’ve been paying into the policy in question for a long time. 

However, there is one exception to this rule, which we’ll go into below, in addition to elaborating on the other types of life insurance available.

Whole-Of-Life Insurance

This kind of life insurance has no policy term, and therefore, a pay-out will be made in the event of your death, whenever that may be. As long as you continue to pay your premiums, whole-of-life insurance policies are designed to carry on for the remainder of your life. 

Premiums for a whole-of-life insurance policy can be more expensive than a standard term insurance policy. But there’s also no medical examination needed with this policy, and any pre-existing medical issues won’t be a factor. 

Level Term Life Insurance

With a level term life insurance policy, you have more control over the timeframes in which your life insurance policy begins and ends. Level term life insurance coverage allows the policyholder to govern the specific amounts paid out. 

The amount you decide upon in terms of a payout will be set against the length of your agreed-upon policy. It will remain the same amount, no matter when a claim is made, as long as it’s within the set terms of the policy. 

Decreasing Term Life Insurance

A decreasing term life insurance policy is designed to assist people who have financial duties that will reduce over time (repaying the mortgage on your house, for example). Much like your other financial obligations, the payout of decreasing term life insurance will reduce over the policy term. 

In other words, you’ll pay a premium in exchange for a policy with a payout that will decrease over the course of your fixed terms. For your loved ones, this means that they’d be entitled to more money if you passed away closer to the beginning of the terms, and less if you were to die closer to the end.

Family Income Benefits Insurance

This is the best life insurance option for people who want to give their loved ones a regular income for a set period in the event of their death, instead of a lump sum. With a family income benefits insurance policy, you’re able to stipulate an amount that you’d like your beneficiaries to receive, and for how long you’d like them to get it. 

A monthly premium would then be worked out, which you’d pay in exchange for that cover. For example, let’s say that you’ve decided your loved ones need £2,500 each month for the next 25 years if you pass away. If you unexpectedly died in the fifth year of your policy, that amount would be paid out to your family on a monthly basis for the next 20 years. If you pass away after the policy terms have ended, your beneficiaries will receive nothing. 

Joint Life Insurance

A joint life insurance policy doesn’t have to be made between a spouse or life partner. In fact, you can take out this kind of policy with anyone you like, whether it’s a friend, a business associate, or a family member. 

Unlike a standard life insurance policy, which pays out monies to a chosen beneficiary, a joint policy pays a lump sum to the other person listed on the policy in the event of your death and vice versa. Once this happens, however, the surviving policy member is no longer covered and will have to take out a new life insurance policy if they wish to stay protected. 

Using this Information to Compare Life Insurance Policies

You can now combine this new insight into the kind of life insurance policies available and the questions you’ve answered above to find the best life insurance possible. 

Are you between the ages of 50-80? Then over 50s life insurance may work best for you. You’re guaranteed to be accepted, and like a whole-of-life insurance policy, you won’t have to sit through a medical examination to get coverage. While a lump sum payout is guaranteed, the amount tends to be smaller in comparison to other policies. 

While family benefits coverage may be more affordable when you compare life insurance policies, and the idea of a regular tax-free payment being made to your family may sound good, your premium will be determined by the following factors: 

Your age (younger policyholders are considered less of a risk)
The amount you want to be paid to your beneficiaries regularly 
Smoking, medical history, and other health conditions 

Family income benefit plans also come with the option to add life and critical illness cover, which means that your life insurance policy will pay out if you’re diagnosed with one of any of the serious illnesses that the policy covers you for. 

Joint life insurance policies are a strong choice for those who don’t see the point in having two separate policies. And if both policyholders should die at the same time, any funds can still be paid out to a specified beneficiary. 

Are you just looking for a simple and standard policy that offers a sizeable lump sum payout? Then the best life insurance UK providers can give you may be a straightforward level term policy. 

Finding the Right Insurance Provider

When the unexpected occurs, it’s vital to have the best life insurance UK providers can offer. But what about the provider in question? How can you ensure that your needs are met by a company that you can rely on? 

Reputation: An insurance provider with a strong reputation is an insurer that handles claims efficiently. And when the unexpected happens, it’s important to have a reputable provider to interact with and help to guide you through the claims process. Don’t overlook online reviews, where current and previous customers alike will have their say.

Customer convenience: When you compare life insurance providers, it’s always a good idea to do a little ‘online audit’ and explore how they explain their policies and procedures across their website, social media feeds, and other forms of communication. Modern insurers should have specific customer care contact hubs for a fast response to any issues. 

Clarity and costs: Anyone can put an enticingly low price on their website to grab your attention. However, the best life insurance companies will also help you to understand what goes into that price while educating you on exactly what you’ll have in exchange for that amount. This includes being open and clear about coverage limits and the things each policy excludes in terms of protection. 

As far as your responsibilities go when it comes to finding the best life insurance companies, you have a duty to be honest with your provider. This means divulging any information that may affect a future claim. Doing this avoids any potential issues later that could null and void a payout to your beneficiaries. 

When you compare life insurance options, this combination of openness and trust will serve as a compass that points you in the right direction, finding that ultimate provider to give you a great deal on the right life insurance policy for you. 

Final Thoughts

With sufficient coverage and the foresight to reassess your needs on a regular basis, you’ll be fully prepared for whatever the future holds. But in order to get to that place and enjoy the peace of mind that comes with it, it’s important to follow your heart, follow your instincts, and follow these tips in order to find the best life insurance for you and the people who matter most in your life. 

Life Insurance,

easier than ever.