Shop around for the best life cover deal

With recent research revealing that there can be huge disparities between life insurance premiums available to British consumers, you would imagine that most people would take the time to find the best deal available.

But according to an adviser with Libra Financial Planning, many are failing to take advantage of the great prices on offer, as well as the wealth of advice available in the industry.

The Sainsbury's Bank Life Insurance Index found that life insurance premiums can vary in cost by as much as 66.2 per cent.

But, as the adviser confirmed, "A lot of [customers] just go straight to their bank and get their bank to insure them".  

He added: "And the banks are usually more expensive than if they shopped around. There are websites available where they can get the cheapest quotes… I don't think they do shop around."

With personal debt levels rising and a pensions crisis looming, the importance of securing your financial future has never been greater.

Taking the time to do some research, work out your needs and find the best deal might be time-consuming, but would ultimately be worth it, the Libra adviser explained.

"If somebody knows in their mind what they want," he said, "they can then do the research for themselves and find the cheapest and best provider. They can do all of that online, it just takes maybe a bit longer than going to see an adviser."

"It's more important for somebody to have some sort of cover in place, especially if they've got children or a big loan, than to not get anything."


However, applicants should always be careful to pore over the details of their policy, he added.

Though the Association of British Insurers recently issued clarity guidelines to reduce the amount of claims rejected due to non-disclosure, it remains crucial to fully appreciate the extent of your life cover.

"People don't really understand what they're getting because it maybe hasn't been explained to them well enough," the adviser stated. "Especially if somebody's buying it directly from a supermarket or online, they may not read all the small print.

"That can be for anything: credit cards, loans. A lot of people don't read the small print and get caught out in the future. But hopefully if they're seeing an adviser - whether that adviser works for a bank, or is an IFA, or whatever - that adviser will explain to them exactly what cover that insurance will provide."

Customers should appreciate the differences between life insurance and life assurance, he explained.

While the former provides cover for possible occurrences, such as an accident or illness, the latter will pay out for definite events, like retirement and death.

Article Source: http://www.moneyachiever.com