Money-Minder.com finds there are savings to be made on life insurance and gives top tips on how to get the best deals.
Sleaford, Lincolnshire, UK, June 28, 2011 -- Research by life and protection comparison website Money-minder.com has found that the lowest and highest premiums for simple level term life assurance bought online without advice could differ by as much as 30%.
Using one example, a 31 year old male non-smoker taking out £200,000 worth of level term life assurance for 25 years found the lowest guaranteed ‘no-fee’ premium of £9.60 pm compared to £13.58 pm from another insurer. Over the life time of the policy the difference would amount to a saving of £1194.00.
For smokers the savings could be even higher. A 31 year old male smoker taking out the same cover could pay as little as £15.59 pm for a guaranteed premium on a ‘no-fee’ deal but one insurer wanted £23.24 pm for exactly the same risk. The saving over the life-time of the policy would be £2295.00.
Women can save money too. A 27 year old female non-smoker taking out £200,000 of level term life cover for 25 years would find guaranteed ‘no-fee’ premiums between £6.40 pm and £10.00 pm on Money-minder.com. The saving made by choosing the lower premium would be £1080.00 over the term of the policy.
Ray Black, MD and founder of Money-minder.com commented: "With something simple like level term life insurance it’s very difficult to argue that it’s worth paying a bit more to get insurance from one provider over another. The trigger for making a claim is indisputable so there should be very little between the services insurers provide. Although one insurer may say that they can issue a settlement a bit quicker than another you'd have to ask yourself if that’s worth paying an extra £1000 or more for.”
10 Top tips for getting the best life insurance deals
1.Shop around! Use trusted comparison sites like www.money-minder.com to compare lots of insurers quickly.
2.Don't buy life insurance from your mortgage provider. - Previous research by Money-minder has shown that you may pay more for life insurance from your lender than by arranging it yourself.
3.Consider paying a one-off admin fee to get your insurance set up. The monthly premiums will be cheaper and you may save money in the long run.
4.Watch out for 'reviewable' premiums - Insurers can increase reviewable premiums throughout the life of the policy so what may start off as cheap insurance can become expensive. Choose ‘guaranteed’ premiums which are fixed for the life of the policy.
5.Get the right amount of cover. Some websites now have handy tools like Money-minder’s finance navigators to help you decide the type and amount of cover you need. Do your homework to ensure you know what you want before you start looking for quotes.
6.Watch out for 'lead farmers' - some websites claiming to compare life insurance are only after your personal details so that they can sell them on to insurance brokers. Be careful what personal information you give out. If in doubt give a false name and telephone number when just looking for quotes. You can give your genuine information when you find a company you trust and want to deal with.
7.Give up smoking! - Smokers pay much more for their life insurance cover than non-smokers because of the harm it can do to their health. However, once you've given up smoking for a year many insurers will rate you as a non-smoker and you'll be able to arrange cheaper life cover.
8.If you're replacing an expensive older life insurance policy with a cheaper new one, make sure your new policy is on risk before you cancel the old one. You want to avoid any periods where you are not covered.
9.Answer all questions on your application honestly. Previous medical conditions may affect the cost of your cover but if you don't disclose all relevant information your family may have problems making a claim should you die.
10.Consider the advantages of writing your life insurance policy 'in trust'. These may include avoiding some inheritance tax, your family not having to wait for probate in order to access the settlement and better control over who benefits from the policy.
-Ends-
For further information please contact:
Jason Wyer-Smith at 42 PR on 07824 818242
Email: jason@42pr.com
Notes to Editors:
To link to our site please use: http://www.money-minder.com
Money-Minder.com was founded and created by Ray Black, Dip PFS, an Independent Financial Adviser. Money-Minder.com is online personal finance website that incorporates an exclusive and unique interactive comparison service providing free genuinely online quotes and is full of useful information to help customers choose the right cover and product to suit their needs.
Money Minder Financial Services (UK) limited is authorised and regulated by the Financial Services Authority (FSA).
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