Don’t let life insurance quotes confuse you
Published Thu, Jan 24, 2013 Updated Tue, Feb 16, 2021
If you are thinking about getting a life insurance quote sorted out on the internet then you will find that it is a surprisingly easy thing to do these days. The best insurance sites are well laid out for new users and there are explanations to be found for any details you aren’t sure of.
Having said that, if you want to avoid any confusion then here are the basic details you should be aware of before you start.
The sum insured
This is the amount you want to be covered for. If you have a mortgage then you will want to make sure that your policy covers this amount, so that you don’t leave a debt behind for your relatives. The same applies to any other debts which you want to cover in the same way. It is then a question of working out how much you would like to leave your family to make their lives that bit easier in the future. There is no exact science involved in arriving at this figure but you will find a handy calculator on some insurance sites to help you along the way.
The term of the policy is the period of time you want it to run for. If you are taking out the cover because of a mortgage then you will automatically think about tying this in with the period of the loan. In other cases, you may think that you want the policy to run until you retire or until your children reach a certain age, for example. The exception is if you are taking out a whole of life policy. This is a kind of insurance which pays out no matter when you pass away. Clearly this makes it more expensive than the type of term insurance cover which runs for a certain period and then comes to an end if you have survived this term.
This is how much the insurance is going to cost you, so it is the part of the quote you are sure to pay a lot of attention to. The good news is that insurance premiums are a lot more affordable than you might think. In particular, you will find that over 50 life insurance is now offered at very reasonable rates. Of course, you should avoid choosing your policy purely on the basis of the cost, as the right cover and the right insurance company are just as important.