Once you have decided that you need life insurance to provide for your family after your death you then need to choose how to buy it. You can buy life insurance direct from an insurance company by phone, online or face-to-face. You could also decide to buy life insurance from an insurance broker, or independent financial advisor that specialises in selling life insurance. There are advantages and disadvantages of buying life insurance in each way.
Buying life insurance from an insurance company
Buying life insurance direct from an insurance company is one way of buying life insurance. However buying life insurance direct could mean that you get a cheap or an expensive policy. In order to make sure you are getting a good deal you would need to contact each life insurance in turn to get a quote, which would be very time consuming. Insurance companies sell life insurance by phone, online and from their advisers. Buying insurance online you can see exactly what the policy covers and how much it costs.
Buying life insurance from an insurance broker
Insurance brokers search from a range of life insurance policies for you to find the best cover at the lowest price. Brokers will help you work out what sort of life insurance you need and then search to find the right cover at the lowest price. Insurance brokers receive a commission from insurance companies for each policy they sell. Some brokers will give you some of this commission back as lower monthly premiums and you pay them a fee instead. Generally brokers search the whole of the market to get you the best deal. Occasionally you will find few brokers just sell a single product from a particular insurance provider, in that instance they are not able to search for more options available to you. Also check the amount of commission that they are getting for selling you the life insurance plan.
Buying from an independent financial advisor
Independent financial advisers search from a range of life insurance policies to find you suitable cover at a good price. Some IFA’s are tied up with few selected providers. Always find out whether they search the whole of the market.
Protection when you buy life Insurance
Wherever you buy life insurance you have some protection if things go wrong. Anyone that sells life insurance is regulated by the Financial Services Authority and has to give you certain information and you can complain if something goes wrong.
Things to consider when buying life insurance
- Do some research and get advice to help you decide which is the right type of life insurance and the right policy
- Make sure the life insurance policy is suitable for your needs
- Check how much it costs and if there are any charges
- Make sure you know what will happen if you miss a monthly premium and if you want to cancel the policy.
- Check whether they are able to search the whole of the market for you
How to find the right life insurance policy
Life insurance is complicated and it's essential that you choose the right policy. We specialise in life insurance and will search the market and help you find the right cover at the best price available. Our quotes for life insurance are free and you are under no obligation.
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