Learning to save money when you purchase life insurance online for you or your loved ones may seem like an impossible task, but it’s quite easy. Read on to find out how to save money on life insurance by following these top tips from a financial services planner.
More and more people are buying life insurance online and the numbers seem to be doubling every two years. The reasons are that prices are lower on the Internet and life insurance is fundamentally a simple insurance product.
Even with all the available information online, it’s always a good idea to have a few Top Tips in your back pocket when you’re shopping online for life insurance. They’ll help you ask the right questions and find the best policy.
1. Name a Beneficiary
Making the mistake of failing to name a beneficiary could for your life insurance into part of the estate, putting it through probate. Save your relatives trouble by following through on naming the beneficiaries on your policy.
2. In the early years a Reviewable Life Insurance Policy will be cheaper but a Guaranteed Policy will work out as better buy in the long term.
With a “Guaranteed Policy” the insurance company guarantees never to increase your policy’s premium.
With a “Reviewable Policy” your insurance company can review the cost of your policy at regular intervals, which usually means increasing the policy’s premiums after each review. The review intervals are usually between 2 to 5 years but can vary between insurance companies. The Key Features Documents contain the details of the review intervals.
If you compare the two policies, the early years the premiums for a “Reviewable Policy” will undoubtedly be lower than the premiums for a “Guaranteed Policy”. After that, the premiums for a Reviewable Policy increase eventually catching up with and overtaking, the premium for a “Guaranteed Policy”.
If you currently have a tight budget, then a Reviewable Policy may be the best choice. On the other hand, if the premiums for a Guaranteed Policy are affordable for you, we think they represent your best buy.
A Joint Life Insurance policy is usually written on a first death basis. What this means is that the policy will pay out on the death of the first policyholder, subject to the policy being in force at the time. The bad thing is that it leaves the second person older and uninsured.
Older individuals can struggle to get life affordable insurance premiums, so rather than a Joint Policy consider taking out separate policies now. Overall it will work out to be a little more expensive, but you get twice the coverage and double the peace of mind.