Life Insurance - Money Saving Top Tips
Below is a MRR and PLR article in category Finance -> subcategory Insurance.
Life Insurance: Top Money-Saving Tips
Summary
With the rise of online platforms, more people are purchasing life insurance online, with numbers doubling every two years. The main attraction is the lower prices available on the Internet, coupled with the straightforward nature of life insurance products.
While life insurance is simple, most websites guide clients through telephone-based advice services staffed by knowledgeable personnel. They serve as a safety net, providing assistance when technical knowledge is needed.
Here are some top tips to help you find the best life insurance policy online:
1. Have Your Life Insurance Policy Written in Trust
By having your policy written in trust, the payout goes directly to your nominated beneficiaries, avoiding delays and potential inheritance tax. This can result in a tax saving of up to 40%. Inform your online brokerage of your wishes, and they'll handle the rest?"usually at no extra cost.
2. Choose Between Reviewable and Guaranteed Policies
Initially, a reviewable life insurance policy may be cheaper, but a guaranteed policy is often more cost-effective in the long run as its premiums remain constant. Reviewable policies allow regular premium reviews, often resulting in increases. If affordability is an issue now, a reviewable policy might be better; otherwise, a guaranteed policy offers more stability and value.
Note: Many insurers have stopped offering guaranteed rates for standalone critical illness policies due to unexpected claim rates. However, combining a guaranteed life insurance policy with critical illness coverage can be a real bargain if available.
3. Consider Individual Policies Over Joint Policies
A joint life insurance policy pays out on the first death, leaving the surviving partner uninsured. As premiums increase with age, securing individual policies now may be slightly more expensive but provides double the coverage and peace of mind.
4. Add Critical Illness Cover When Taking Out a Life Policy
If you foresee needing critical illness insurance, add it to your life policy now. This combined approach is generally cheaper than separate policies and can offer guaranteed premiums. Critical illness cover is more costly as you age, so the sooner, the cheaper.
5. Understand the Difference Between Terminal and Critical Illness Cover
Terminal illness cover provides a payout if a doctor diagnoses an illness expected to result in death within 12 months. Most life policies include this feature at no extra cost.
Critical illness cover, however, pays out for a wide range of chronic conditions without a life expectancy limit. This includes conditions like cancer, heart disease, and multiple sclerosis. It’s more comprehensive and, thus, more expensive.
In summary, critical illness cover is more extensive than terminal illness cover, providing vital financial support in the event of significant health issues.
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