Life insurance is highly recommended for anyone with dependants and with most lenders is essential for your mortgage or loan. But why is it a good idea to compare life insurance?
Firstly, there is normally no difference between life insurance companies when buying standalone life insurance, so if one insurer is charging £30 per month and another £20 per month for the same level and term of cover then it would make little to no sense paying the higher amount.
Well it would certainly be easier if all the companies had a set price for cover wouldn’t it? Insurance companies calculate your monthly premium using many factors including age, sum assured, term, whether you smoke or not and if you have any medical conditions. They then try to weigh up the risk of payouts so if ‘insurance house A’ has a high proportion of smokers on their books they will then make the price more expensive for smokers and if you are a smoker you’re then going to find cheaper rates elsewhere. This is done from an insurers reinsurance department and the same applies to age and medical conditions. As insurance rates are dynamic many people seek advice from insurance broker as they have the knowledge of who will have the cheapest rates for your individual circumstances at that particular time.
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