If you've chosen this year to overhaul your finances, there's one thing that will help to give you greater financial security, and that's investing in life insurance. However, we understand that it's something that many of us put off believing that it's boring, depressing and somewhat confusing. Working out which kind of policy would suit you best and how to get best value for money isn't easy, especially if you're buying life insurance online. We take a look at what you need to know when choosing to buy your policy online.
Work Out What Type of Policy You Want
You'll probably find it easier to narrow down your choice of policies if you make a decision about what type of insurance you want before you start your search. Read up on the differences between term and permanent life insurance. Do you want a policy that simply pays out if you should die or do you want a policy that also has an investment element to it? Do you want to have the option to sell your policy for cash? If so, you may want to learn more about your options before making a decision. Use a guide to research your understanding of how and when you can access cash payouts. Payouts vary, for example, a cash payout from a viatical means that you will receive a cash settlement, but you will also relinquish the right to leave the death benefit to your beneficiary.
Find an Independent Broker or Use a Comparison Site
If an agent works for a single insurance company, they will be eager to sell you one of their policies and while it may be an excellent option and prove to be the right choice for you, it's best to shop around. Using an independent broker you can trust means that you'll have access to many different insurance companies and they can help you to decide which type of policy will be best suited to you. Comparison sites can also be a useful tool to help you to compare and understand what different companies can offer.
The Information You'll Need to Have to Hand
While you don't need any specific documents to request a quote, you will need to provide information about your medical history. The online forms will require you to input details about your age, gender, weight and whether you are a smoker. Be aware that if you smoke, your premiums will be considerably higher than those of a non-smoker. You'll also need to answer questions about your personal medical history and give details of any medical conditions or investigations that you are undergoing for the brokers to give you an accurate estimate. You must answer these questions honestly as the information will be verified and you may need to undergo a medical exam. You also run the risk of voiding your policy if you haven't declared existing medical conditions or information about your current medical status.
Choose How Much Coverage You Need and for How Long
The whole point of life coverage is to replace your income and provide for your family in the event of your death. For this reason, most people choose to buy enough coverage to replace their after-tax income for a period until their children turn 18 or include an amount that will also cover higher education fees. Common terms for insurance policies are 10, 20 and 30 years.