Compare Life Insurance
Welcome to Insurance Life Compare
There can be many reasons that you are looking to compare life insurance costs you could be getting married, becoming a parent, purchasing a home or simple have not got around to buying protection. Many people visit insurance life compare just to make sure they are not paying to much for their life cover.
With insurance life compare you can quickly see the premiums from the leading life insurance providers. Our quote engine allows you to see the best life insurance premium for your cover requirements all from the comfort of your own home with no sales free of charge.
Types of Life Insurance Products
Life insurance, pays an amount known as the sum assured to the beneficiaries of the policy when the Insured dies. Life insurance is a financial product that is priced based on the risks involved to the insurance company.
There are several types of life insurance products – term life insurance this can be set up on either a level, decreasing or increasing basis and family income benefit insurance.
Term life insurance: you pay a monthly premium for insurance protection lasting for a set period , when that period is over, the cover also ends. The premiums charged are used to pay for the cost of the life insurance protection. If the Insured dies while the policy is in effect, the death benefit will be paid. When the policy has expired, there are no refunds since all the premiums are used up for the coverage. This is why term life insurance is the cheapest form of insurance.
There are also term life insurance policies that last for 10 years, 20 years or any length of time as agreed upon by both the Insurance Company and the Insured. There are some term life insurance policies that offer the option of conversion – where, after a time, you can convert the term life insurance policy into a permanent life insurance policy.
Thus, term life insurance:
- Provides more coverage for the same amount of money
- Does not accumulate cash values
- Ends when the policy ends
- May have renewal and/or conversion options
Permanent life insurance: This life insurance is called "permanent" or "whole of life" since there are no expiry dates. The policy may have a maturity date but unlike term life insurance, you don't have to renew the policy. Permanent life insurance offers a combination of insurance protection and savings or investment. The savings component is called the policy's cash value. When one pays the premium, a portion of this goes to the cash value. For some permanent life insurance policies, the cash value allows the product to provide an endowment. When the policy matures and the Insured is still alive, he gets the endowment and he can spend it however he wants. The policy then ceases to be effective.
The cash value accumulates over time and earns interests since the cash values are also invested by the Insurance Company. The interest rate depends on the agreement with the insurance company. There are some products that offer a fixed rate of interest while there are others that provide the interest based on how well or how badly the investment does.
Thus, permanent life insurance is:
- More expensive but has cash values
- Permanent in nature
- May be an endowment
How to buy Life Insurance
- Ask yourself: do you need it?
If you do not have a family or aging parents depending on you for support, if you live alone, or if you have substantial assets or savings that will enable your dependents to maintain their lifestyle even when you're gone, you may not need the life insurance coverage. However, if you have people who depend on your income, some debts and a few assets and savings, it is a good idea to prepare for the unexpected and undesired eventuality of your sudden demise.
- Find out how much insurance you need
How much does your family need in order to replace your income during the times that they will need your support?
Here are some questions you need to ask to help you determine this:
- How much do you contribute to the household income annually?
- How much outstanding debt do you have? Do you have credit card debts? Do you have a mortgage?
- What additional expenses will there be if there is only one spouse to take care of the kids? Will your spouse have to hire someone for childcare or elderly care?
- Are you planning on sending your children to college? How much will they need by then?
- How long will your children be dependent on you? How old are they?
One other way to get the approximate amount of coverage you need would be to multiply your annual salary by 10 or 12. And then add in any major debts.
When determining the level of insurance you need, remember that too much is better than too little. Also, there is inflation to think about. The amount that may be sufficient today may not be enough some 10 or 20 years down the line.
- Select the type of policy you want.
Term life insurance is cheaper but only temporary. Permanent life insurance is more expensive but has cash values. It really depends on how much you can afford to put aside.
Your three basic choices will be:
- Term life insurance. This will provide high levels of protection at an affordable cost. However, as you age or if there are changes to your health condition, the premiums may rise. Also, if it is not guaranteed renewable, there is the possibility that the insurance company may deny your application. But you may consider that by the time you reach the age of 65, your children may have already established their careers and are not dependent on you anymore. You may choose between an increasing term, decreasing term or level term insurance.
- Whole life insurance. This permanent life policy provides you with insurance cover for the rest of your life. This long term protection plan is a good way to provide money for inheritance tax if one has built a considerable estate. The cash value of the policy can work as savings the insured can withdraw or take a loan against.
- Endowment life insurance. This permanent life policy provides cover for a specific number of years and then when the policy has matured, you will receive the face amount of the policy. That means if die during the coverage period, your beneficiaries will receive the death benefit plus any cash values. If you survive the coverage period, you may use the endowment for your retirement or to fund your child's education.
Shop around. Life insurance rate comparison takes time, you can also miss the best deal. You can fill in our simple no obligation form on the right and we'll compare the market for you fast and easy.
Life insurance Advice
comparing life insurance online is only the first step in getting the best life insurance you and your family. If you think you have found the best life insurance for your needs you can apply online for your plan or speak to one of our advisors. They will then spend a few minutes of your time to make sure that the life insurance you have selected is right for your needs.