Life is precious and unpredictable. None of us knows how and when we will die, but we can ensure that our family is predicted financially should the worst happen. Cheap online Life insurance is a great way to give your loved one’s peace of mind and can be bought in a number of ways.
In this article, we’ll be looking at applying for online life insurance and how to find the right policy for you and your family.
The main types of life insurance cover
With a standard life insurance policy, when you die a lump sum policy is paid out to your loved ones by the insurer. There are two main types of life insurance – whole life insurance & term life insurance. Though they sound similar, they work quite differently from each other.
Whole life insurance works just as the name may suggest in that it covers you for the remainder of your life from when you took out the policy. No matter when you die, your family is guaranteed a pay-out – so long as you keep up with your premium payments. Typically, whole life insurance is more expensive than other types of life insurance, however, the guaranteed pay-out gives you added peace of mind.
Term life insurance is slightly different in which you are covered for a set period (i.e 30 years), known as the policy term. With term life insurance you will only receive a payout if you die during the policy term. This type of cover is cheaper than whole life insurance but you are not guaranteed a pay-out.
Term life insurance works in 3 ways:
- Level term – The standard type of term life insurance. Your premium costs and pay-out value remain the same through the length of the policy.
- Decreasing term – This type of policy is usually taken out to cover large payments like a loan or repayment mortgage. Over the policy term , the policy payout value decreases. The idea is that if you die before the loan or mortgage has been paid off, your family can use the policy pay-out to clear the outstanding balance.
- Increasing term – The value of your policy increases over time in order to help protect the pay-out amount from the effects of inflation. The downside is that though the value increases so do your monthly premiums.
The cost of life insurance
There are several factors that can determine how much a life insurance policy will cost you. Before taking out cover, your insurance provider will ask you a few questions about your health and lifestyle. They’ll need to know about:
- Your age
- Health
- Occupation
- Smoking status
- The level of cover you want
- The amount of cover needed
Your insurer uses your answers to determine the likelihood of a claim being made. With life insurance, the older you are, the greater the cost will be, so it’s best to take out cover when you are young.
Online life insurance – tips for applying
Life insurance is a big commitment but definitely worth it! With so many providers and comparison sites out there, it can be hard where to look. If you are considering taking out a life insurance cover, it’s best to be prepared to ensure a smoother process.
1. Do your homework
Just like any important purchase, you’ll want to know the ins and outs of how it works. For example, if you’re buying a car you won’t just buy one blindly, you’ll want to know the specifications and costs – life insurance is no different.
With a whole life insurance policy, you’ll be paying premiums until your death, so it’s important you understand how your policy works and what you are covered from. Thankfully there’s a wide range of information out there to help you – including what we’ve already covered above.
2. Decide on what cover you need
There are a number of life insurance options available to you – but the chances are you will either opt for term life or whole life policy. As mentioned previously there are some big differences between the two including costs and length of cover.
It’s important to think about the amount of cover you will need and the ways in which the policy pay-out can be used to help your loved ones. Is it to help cover your home’s mortgage? Or to provide support for your family’s living costs? Ultimately the intended use of your policy will determine the type and cost of cover.
3. Get advice about life insurance
If you have any concerns about life insurance, whether it’s to do with costs or which type is best – it’s worth speaking to an insurance advisory broker or financial advisor. Discount Insurance brokers can offer specialist advice in helping you find the right policy for the best prices.
If you have any financial concerns about taking out life insurance it’s best to speak with a financial advisor. They can offer expert guidance on budgeting and whether it’s best to cover any loans or debts you have outstanding.
4. Apply for a quote online
Once you know what type of insurance you’ll need to apply for a quote – this is an insight into the cost of your monthly premiums. By now you’ve probably seen plenty of ads for low-cost quotes – however that exact price is not guaranteed.
Typically, when applying for a quote online, you need to simply fill out an online form. These may include a health questionnaire in which you will need to disclose any conditions you may have. It’s important to answer any questions as truthfully and accurately as possible – if not your cover may be voided later down the line.
Hopefully, this article has helped you on your way to applying for online life insurance. We all want to protect our families for if the worst should happen, so, what are you waiting for? Apply for life insurance today!
