There is a rising trend of individuals purchasing life insurance online, with the numbers doubling every two years. This can be largely attributed to lower prices and the fundamental simplicity of life insurance as a product.
Despite the simplicity, most websites provide access to telephone-based help and advice services manned by experienced professionals. This acts as a safety net for those who require technical knowledge.
Here are a few top tips to keep in mind when shopping for life insurance online:
1. Opt for a “Written in Trust” policy: Designating the money from the policy to go directly to the nominated person(s) in the event of a claim. This can also help avoid the estate having to pay inheritance tax and result in significant tax savings.
2. Choose between a Reviewable Policy and a Guaranteed Policy: While a Reviewable Policy may be cheaper in the early years, a Guaranteed Policy may prove to be a better long-term option. Insurance companies typically do not increase premiums with a Guaranteed Policy, while Reviewable Policies may see a price hike eventually surpassing the premium for a Guaranteed Policy.
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3. Consider separate policies over a Joint Life Insurance policy: A Joint Life Insurance policy usually pays out on the first policyholder’s death, leaving the second person older and uninsured. Separate policies may be a bit costlier but provide double the cover and peace of mind.
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