We have created a range of useful product pages and comparison tools to help make your life easier when it comes to finding out about Life Insurance.
Below, we have put together an overview of key policy factors and things to consider when choosing and setting up your Life Insurance policy. After you’ve looked it over, you can use the menu bar above to beginning looking at different insurers and their policies.
There are a range of Life Insurance policy options to choose from. The choices you make will depend on your personal circumstances and needs.
Definition: The total payout you are entitled to when you claim
What to Look for: You will need a Life Insurance payout that covers important costs for your loved ones, such as funeral expenses or a mortgage. The benefit can be level, so stay fixed over time, or decreasing, declining over the life of the policy (typically to match a mortgage).
Definition: The regular payments you make to insurers in exchange for your policy.
What to Look for: Life Insurance policies are typically long-term, which is why you will need to be cautious about reviewable and age banded premiums. These can become much more expensive the longer you have your policy.
Definition: A policy’s cover is linked to changes in the the cost of living to counteract the effects of inflation.
What to Look for: With Level Life Insurance, it’s important that you consider index-linking Life Insurance. In 20 or 30 years time, the purchasing power of your Life Insurance may be far lower due to erosion by inflation.
Definition: The type of cover your policy gives you. Different types will cover a different amount of people, payout differently, or change over time.
What to Look for: The option you choose will depend on what you need from your policy.
Definition: An additional type of cover to add to your policy that pays out if you develop a critical illness.
What to Look for: Covered critical illnesses are defined by the insurer. Look for insurers that cover a good number of critical illnesses and have robust definitions of those illnesses to ensure you can claim when you need it.
One of the features in Aegon’s Life Insurance policy includes an advanced payment facility, which will pay up to £10,000 to a funeral director to cover the costs of the send off if the Life Insurance payout is tied up in probate.
AIG gives policyholders a range of interest rates to choose from when taking out a Decreasing Cover policy, allowing them to tailor their cover to their needs. It also has a ‘Best Doctors’ service where policyholders can get fast access to medical advice.
Aviva offers increasing term life insurance in addition to decreasing life insurance and their level cover offers either guaranteed or reviewable premiums.
Guardian’s children’s Critical Illness Insurance is an optional extra on its policy, unlike most other providers, which allows you to remove it from the cover if not relevant to your needs.
Legal & General has won several awards over the years for their client services. It offers guaranteed or reviewable premiums with unlimited cover.
LV is the UK’s largest friendly society. In 2016, LV paid 97% of its Life insurance claims and regularly publishes its claims payout rates. Its optional Critical Illness Insurance covers as many as 64 pre-defined critical illnesses.
Royal London is one of the UK’s most recognisable Life Insurance providers. It offers a comprehensive range of options for its Life Insurance policies and additional benefits, such as legal services that help you write your will.
Scottish Widows enjoyed one of the highest payout rates of all Life Insurance companies in 2017, standing at 99.4%.
Vitality offers Term Life Insurance and Whole of Life Insurance with flexible options. Its plans may come with the chance to reduce premiums and collect rewards in exchange for regular exercise.
With the Level Protection Plan, you can opt to convert some of all of your Life Insurance to Whole of Life Cover at the end of the policy’s term subject to certain conditions being met.
As well as looking at insurance provider reviews, you should make sure that your insurer is able to provide you with what you need for your cover. Some insurers limit their cover or may not have the right options you need, so be sure to shop around.
Independent Protection Expert at Drewberry
Definition: How often insurers pay out when customers try to claim.
What to Look for: Insurers that publish their payout rates show their commitment to transparency and consistently high payout rates show a dedication to customers. Fortunately, payout rates for Life Insurance are incredibly high.
Definition: Supportive services and rewards that insurers offer policyholders at no extra cost.
What to Look for: Addition benefits and services, especially those focused on support, can be valuable during difficult times. Look at AIG’s ‘Best Doctor’ service as an example of the sort of valuable benefits to look
Not all of the policies we have reviewed are available to be purchased directly from insurers. Instead, you can speak to a financial adviser, like Drewberry, to learn about and apply.
Being life insurance brokers we can talk you through your options to ensure you gain the cover you want, without any unexpected limitations.
If you have a pre-existing medical condition we are also able to speak to the underwriters at each insurer to try and gain you the most favourable terms available in the market.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.
If it is all getting a little confusing and you want to talk through your options to make sure you find the most suitable cover please don’t hesitate to get in touch.
Pop us a call on 02084327333 or email email@example.com.
Director at Drewberry
I had the pleasure of dealing with Jake Mills in organising my insurance. Jake was fantastic to deal with — his patience and understanding really helped.