Many of us have life insurance. This can be alongside a mortgage to pay it off should we pass away before it is paid or it could be a separate insurance which will pay out if we get a terminal illness or die. Many people will take out insurance for the sake of their family, either so they are left without debt or so that they are taken care of financially. If you have loans or are the main bread winner, then it is understandable that you will want to do this and ensure that they get the financially stability that they need. However, it can be confusing choosing life insurance. There are so many different ones that you can choose from and they vary in what they offer and their prices.
Where to look for life insurance
It is good to be aware of where you can find life insurance and this should help you in being able to find a deal that will suit you. There are many providers and this is why it is so difficult to choose who to go with. There are different methods that you can choose which have their own advantages and disadvantages.
- Comparison website – a comparison website is a popular choice. Many people like the fact that it is a fast and convenient way to see what the price range of insurance might be like. It is easier than getting quotes form the places all separately as well as you enter your details once and get information from a selection of providers. There are disadvantages though as not every provider is on these sites. They will vary in the providers that they give you quotes for but even if you look at all of the comparison websites you will not see all providers as some are just not on there. Comparison websites take commission on any leads generated as a result of their recommendations and this means that some companies will not use them as it means they will have to charge more as a result of this. Comparison companies may also not include those insurers that pay no or very little commission as they will not gain so much or anything at all as a result of recommending them.
- Insurance broker – you may therefore prefer to go to an insurance broker. However, they are pretty similar in that they take commission on leads and could be biased in their recommendations. They may look at more insurers though, but this will depend on the specific broker that you go with. It may be better to go through them if you have specific insurance needs, perhaps if you have an illness or a medical condition which makes it harder to find insurance or makes insurance more expensive.
- Financial advisor – a financial advisor will not charge commission and so they could be a better option for this reason. If they are independent then they should compare a lot of different insurers as well, which means that they are more likely to find the most suitable option for you. The only problem is that they do charge an hourly rate so you will have to find the money for this. If you are taking out insurance to go with a mortgage, then you might be using them to help you find a good mortgage anyway and therefore they might be able to recommend the insurance along with it and not charge that much more.
- Individual websites – another option is to do all of the searching yourself. You could go to the websites of individual providers and then get a quote form each of them and then compare them. The problem with this is that there are a lot of providers and it will take a long time to compare all of them. However, if you have a specific few providers that you have heard of and would like to compare then this can be a good method.
Is the cheapest the best?
It is also worth thinking about whether it is a wise decision to go for the cheapest lender anyway. Although it does seem wise to not pay more than necessary you need to make sure that if you are using a cheap lender, that you are getting good value for money. Make sure you know what is included in the policy and that it has everything that you need. It can be good to establish what you are looking for first and then you will be able to match this up with the most suitable policy. Using a financial advisor or broker could make this easier as they will know which policy will suit you the best. It is equally important though to make sure that the policy does not include things that you are not interested in as you will be paying more than necessary for it.