More and more people are buying life insurance policy online and the numbers seem to be doubling every two years. The reasons are clear. Prices are lower on the Internet and life insurance policy is fundamentally a simple insurance product.
Despite the underlying simplicity of life insurance, most web sites channel their online clients through a telephone based help and advice service manned by experienced personnel. They represent your safety net so if a little technical knowledge is called for, help is at hand.
But it’s always a good idea to have a few Top Tips in your back pocket when you’re shopping online for life insurance. They’ll help you ask the Good questions and find the best policy.
1. Always have your Life insurance policy policy “Written in Trust”.
This implies that in the event of a claim, the money goes directly and immediately to the person(s) you nominate when you first take the policy out. It also avoids all possibility of your estate having to pay Inheritance Tax on the proceeds of your policy and that could represent a 40% tax saving !
All you have to do is tell the online brokerage organising your policy that you want your policy “Written in Trust” and the names of the people who the life insurance company pay in the event of a claim. They will then sort it all out for you. The extra good news is that this service is invariably free of charge. So it’s a win win situation and there aren’t many of those around these days !
2. In the earlier years a Reviewable Life insurance Policy will be cheaper but a Guaranteed Policy will work out a better buy in the longer term.
With a “Guaranteed Policy” the insurance policy company guarantees never to increase your policy’s premium.
