Choosing the best life insurance and critical illness insurance policy
Published: 1st Mar 2009
Life insurance and critical illness insurance policies come with a wide range of options and premiums, so choosing the policy that gives you the most suitable cover at the best price can be like walking around in a foggy field.
The internet is a great tool for both researching and securing the most competitively priced policies for both your life insurance cover and also your critical illness insurance policies.
Comparison sites, such as Top Quote UK Financial Services, allow you to compare premiums from a wide range of insurers including big names such as Bupa, Royal Liver, AXA, Fortis and Legal and General. They will also let you choose from a wide range of options such as level and decreasing, index linked, amount of cover and length of protection.
So how do you ensure you have got the right cover at the right price?
Finding the best life insurance
- Use a comparison website that shows you the whole of the market and not just a small selection of companies.
- Only take the life insurance cover that you need. It may be tempting to insure yourself for the maximum amount possible, but it will be heavier on your pocket especially if you struggle to make the premiums later on.
- If you are looking to keep your premiums as low as possible and you have a Capital and Repayment mortgage, opt for a decreasing life insurance option. With this type of life cover, the payout of your policy goes down over the years, as you pay off your mortgage balance.
Choosing this option is usually cheaper than a level term policy where the payout amount does not decrease over time.
- If you have suffered from medical conditions in the past, discuss your quotes with a qualified adviser, like those at Top Quote UK Financial Services, who will be able to let you know how and if the condition is likely to affect your policy premium.
- If you are looking to cover both yourself and a partner, consider taking two individual policies instead of a joint cover. This usually works out only a few pound extra but will effectively give you twice as much cover for your money.
- If you are over 50 or over 60 and are in reasonable health, don't be tempted by over 50 plans and over 60 plans. They usually work out far more expensive with a lower payout and come with the risk of no payout due to non-disclosure caused by the lack of medical information asked when you apply. These type of over 50 plans are usually suited only to those who have suffered from medical problems and therefore cannot secure normal life assurance at a reasonable price.
Finding the best critical illness insurance
- Choosing your critical illness insurance is very similar to your life insurance but with a few critical differences. Unlike with life insurance where most policies are very similar, critical illness covers can vary from company to company so the cheapest policy may not always be the best value for money.
- Each insurance company must cover a basic number of illnesses such as heart attacks, strokes and some advanced cancers but many companies choose to cover additional illnesses ranging from Angioplasty to Severe Lung Disease. You can find a full comparison of our panel at the bottom of this article.
- Always take your life and critical illness cover together as a package if possible. In most cases taking your critical illness as a standalone will work out at a similar price to taking the two covers together, making it much better value for money to protect against both.
- The cost of Critical Illness cover can be considerably higher than just taking life insurance by itself. If you find your quotation is beyond your required budget, consider taking a lower amount of Critical Illness Insurance to still provide you with some protection whilst keeping the premiums down.
- Don't get confused between critical illness insurance and terminal illness. The two are completely different and work in different ways, covering different events. Whereas critical illness cover will payout if you are diagnosed with any of the designated illnesses, terminal illness will only payout if you are diagnosed with a terminal illness from which you will die within 12 months.
- If you have suffered from medical conditions in the past, especially with Critical Illness insurance, it is important to speak to any adviser. An independent adviser, like Top Quote UK Financial Services, will be able to give you an indication as to the effect of your condition on the cover. Possible effects can sometimes include increased premiums or exclusions on the cover.
Speaking to an adviser about your life insurance or critical illness cover can be one of the largest money saving tips you follow. An adviser can often suggest options which are not available directly online or ways of organising your cover which you hadn't thought of.
They will also ensure you have the cover you need, at the best value for money and guide you through the whole process of setting up your policies from paperwork to medical information.
Like with most subjects, insurance comes with its own language which can include its own confusing terminology. Our Jargon buster aims to help you clarify what some of the terminology you might find on our website means so that you can fully understand the policies and covers you are considering.