It can be hard to know where to start when it comes to life insurance. What’s right for you versus what costs a lot can be a tough choice for anyone to make. Ultimately, when it comes to life insurance it depends on your own situation. This can be hard to hear when you’re looking for solid answers!
One way of getting prepared is getting familiar with all the steps to buying it. This will give you a clearer idea for what you need to have ready at each stage. At Choozi we make the process simple and straightforward. We’ll walk you through every stage in this article. By the end, you’ll feel more confident about getting the right insurance for you.
What do you need life insurance for?
Before getting the process started there are a few questions to consider. There is no point in getting life insurance for the sake of it. Everyone’s situation is different but there are considerations to make no matter who you are.
You need to ask yourself things like:
- How much money would you want it to payout?
- Can you afford the premiums?
- How long do you need the cover for?
These questions are some of the first things that a life insurance company will need to know. When filling out your details with Choozi, these questions are part of the process. Having a rough estimate in mind will help you make a decision on what's right for you.
What are some of the policies available?
So, once you’ve answered the initial questions you need to consider what’s out there. There’s plenty of variation on what policies can offer. Some of the different combinations and types can seem intimidating at first! Yet, there are a few main ones that will be relevant to the majority of people.
Level Term Insurance
Level Term Life Insurance is a policy that could offer you certainty. With this policy type, you’ll select the benefit amount and cover length at the start. Your monthly premiums are then set by the insurance company. From there, as long as you continue to pay your premiums you will be paid a lump sum benefit if you pass away during the insured term. Your premium will not increase or decrease at any stage. This can offer security and certainty for the duration of the policy.
Decreasing Term Insurance
This type of insurance could be for someone with a mortgage or a large financial commitment. With decreasing term life insurance, you start off with a large benefit amount and then over time it decreases. Generally, it would be in line with when that financial commitment would come to an end. This also means that premiums would decrease in line with the benefit amount.
Critical Illness Cover
This cover offers financial support if you were to suffer from a critical illness. Going into hospital long term can mean a loss of income or expensive hospital bills. Critical illness cover is a way of protecting against this. If you are diagnosed with a critical illness, you will be paid a tax-free lump sum. This can be used for hospital bills, rehabilitation or even a recuperative holiday after the illness. What is considered a critical illness depends on the insurer. It’s important to check that list when getting the policy.
Over 50s Life Insurance
If you are aged 50-80, you'll be pleased to hear that Over 50s Life Insurance is designed with you in mind. Unlike other types of life insurance, it offers guaranteed acceptance. This means no matter what your health situation is you can avail of it. Often this type of insurance is used to help with funeral costs, leaving gifts behind or helping to cover any debts.
These are some of the most common types of life insurance that you will encounter. By no means is this list exhaustive. There are other less common types of insurance like whole of life policies. These tend to be the more expensive types of cover though.
How to purchase your chosen policy
Now that you have the exact policy in mind it’s time to get started on buying it. To start with we need a couple of details from you. These details are things like your age, how much cover you are looking for and some health and lifestyle questions. Don’t worry they won’t take long to get filled out! In a matter of minutes, you’ll have access to a list of the best policy prices for your needs.
At Choozi, we are 100% impartial. We have no loyalty to any life insurance provider in the UK. Our aim is to make it as simple and straightforward for you to have access to the best quotes for your own particular situation. We work with the best life insurance companies in the UK to find a personalised quote.
When you’ve entered in your details and preferences we will look at what’s out there. Each time we look for quotes you can be confident knowing that these quotes are the best available. It won’t be a case of us telling you which quote to go for. You can be as Choozi as you like!
It’s important to consider your ability to pay the premiums not only right now but further down the line. It could be the case with the insurer you choose that there could be strict rules on the payment of premiums.
When you have selected the policy that is right for you, there are just a few final steps. You will have to enter a couple of details such as your nominated beneficiary and your bank details. Once they have been entered, you will be given a summary of everything.
Depending on the insurer you could be covered there and then. With some policies, it will be a requirement that a period of time must pass in order for you to be fully covered. However, in most cases, you will be covered right away.
If this all sounds like a lot, don’t worry! You can take a break at any stage. We will save your details for when you’re ready to come back. All you will have to do is enter your email address and you can start from where you left off.
How are monthly payments made?
As mentioned above, there will be a time when you need to enter your bank details. The reason for this is that payment is taken by direct debit. During the purchasing process, you will be asked which day of the month your direct debit will be taken. This can be any day of the month that suits you best. Again it’s important to bear in mind your ability to pay that premium each month.
How can you make changes to the policy
Life is made up of constant changes. Some are big and some are small. It’s important to know if you can make the changes to your life insurance. You’ll be glad to know that it is a relatively easy process. The ability to make changes to a policy can depend on the insurer and the type of policy that you’ve selected.
For certain policies, you may need to apply to make changes. It will then be up to the insurance provider to make a call on whether or not the changes can be made. The reason for this is that sometimes you are essentially applying for a new policy. If the changes are accepted you will then get a new policy statement in the post.
There are plenty of reasons to make changes to a policy. These can be things like the family getting bigger, loss of a job or a new mortgage. Any time you feel like you either need more cover or might need less then it may be time to look at making a change.
Will I get anything back if I cancel my policy?
With the majority of life insurance providers there will be what’s known as a “cooling off” period. What this means for you is that if you change your mind or feel like it isn’t right for you, you can end the policy no problem.
This can vary by provider so it is important to make note of some of the fine print when you’re getting the policy.
How can my loved ones make a claim?
It’s never easy to think about death. It’s important to know that life insurance companies aim to make this process as efficient as possible. Oftentimes there are specific phone lines set up to help process claims. As a general rule of thumb, you can expect claims to take a couple of working days to be processed. From there the nominated benefit amount will be transferred to your beneficiaries.
Life Insurance with Choozi
There’s no doubt that the circumstances around life insurance can be stressful. It can almost feel like you’re trying to predict the future at times. At Choozi, we try to break it down for you as much as possible. You shouldn’t have to accept any old policy. That’s why if you go with us you can have confidence that you’ve chosen the best.