One wonderfully simple way to get cheaper Life Insurance Quotes online

Buying life insurance can be costly, so if there’s an easy way to cut costs it makes sense to take advantage of it. After all, we’re only human.

One of the easiest ways to shrink the size of your premiums is to source insurance through a commission-free broker.

Simple? Yes. Obvious? Perhaps. Well-known? Unfortunately not. It’s a simple money saving strategy that so many fail to take advantage of, but here’s why you should…

Commission is the money-maker for brokers, the main culprit that drives up the cost of what should be an inexpensive product. The inflated price of the policy often forces people to sacrifice quality in order to afford the premiums, meaning that you don’t get the deal you deserve. Going with a commission free broker (also known as discount brokers) however, means that your hard-earned cash will get you the best quality product possible.

An example

To put this into perspective, here’s a real example using Discount broker Best Price FS’s comparison service.

Pete is a 33 year-old non-smoker who’s after individual, level term cover of £125,000 for 30 years. If this policy was bought directly from the cheapest insurer charging commission, a guaranteed £125,000 payout would cost:

• Per month: £8.90
• Per annum: £106.80
• Life of term: £3204

If the same was purchased with a commission free broker it would cost:

• Per month: £7.02    (£2.88 saved)
• Per annum: £84.24 (£22.56 saved)
• Life of term: £2527 (£677 saved) 

Savvy savings

As the example shows, you can save a considerable amount from buying through a discount broker. Although Pete’s £2.88 a month saving doesn’t seem like that much,  the worth of savings made over the full term (£677) is indisputable. What’s that saying again – ‘look after the pennies and the pounds will look after themselves’? It couldn’t be more evident here.

The general public have been fairly slow on the uptake regarding this money-saving tip. A recent YouGov survey reported a significant misconception of commission rates by consumers, perhaps explaining why so few factor it in when buying. On average 24% of the product’s price goes straight to the broker, but it doesn’t always have to be this way, not if you choose to venture down the commission-free route.

Cost effective?

When you choose to buy through a commission-free broker, you’re asked to pay a small initial fee. And while this may seem like their cunning way to sneak away with some commission, it simply provides a means of processing the policy. It’s true – you’re likely to pay out more initially than if you opted for a commission-based policy, but compared to guaranteed savings in the long term, it’s worth the initial spend.

Just make sure you’re not being taken for a ride, the cost of processing is relatively minimal, and in reality this should be no more than £20. Anything above this and you may want to consider looking elsewhere – for the same policy from the same provider, it pays to shop around for the best price broker.

With your new policy in place and the savings stacking up, you’ll be happy you did. And this is a disposable income you wouldn’t have otherwise had, so a great use for this extra cash could be on something for all the family. This way, you can still enjoy the best, even if you’re planning for the worst.

So if you’re after high quality but cheap online life insurance quotes, choose Best Price FS. A discount broker with a difference. To be directed to our main page, click here.

8 Major Income Protection Myths Debunked

Insurance products aren’t the easiest of things to understand and income protection insurance is no exception. With cumbersome key facts booklets and the media citing stories of context-specific consumer-insurer battles, it’s no surprise that many people misunderstand exactly what it is and what it specifically offers.

Outlined here are eight major income protection myths demystified, so that next time you hear something about income protection, you’ll be able to separate fact from fiction.

Myth 1: It doesn’t pay out

Provided that the policyholder has kept up-to-date with their monthly premiums, and has given truthful personal information from the outset, claims are nearly always paid out. In fact, last year, according to the Association of British Insurers, UK insurance providers paid out over 91% of successful claims. If you’re still unconvinced and want to double check specific insurer payout rates, most of them now provide easily-accessible claim statistics on their websites.

Myth 2: It’s too expensive

This myth is purely subjective. If you were a smoker in a high risk job and wanted a very high level of cover, your premiums would, of course, be costly. For the majority however, income protection is affordable and can cost as little as 30 pence per day. If you want significantly lower income protection insurance quotes, consider buying through a commission free broker or by extending your deferral period – the amount of time between a claim being made and the money being paid out. Premium rates are calculated based on your age, health, smoker or non-smoker and occupation, so if you’re serious about cutting the costs of premiums, it may also be beneficial to adopt a healthier lifestyle.

Myth 3: It’s a waste of money

When it comes to ill-health and injury, people can feel a sense of invulnerability, and so it’s all too easy to see how this kind of myth circulates. But ask anyone who’s used their income protection policy, and they’ll be the first to debunk this notion. If you were unable to work due to illness or injury, the monthly instalments provided by income protection could become invaluable, affording reassurance that bills, loan repayments, and any other expenses could continue to be financed during your time off work.

Myth 4: It isn’t necessary if you receive benefits

Statutory sick pay and other benefits tend to pay no more than £400 a month, which for most, would not cover the rent or mortgage. An income insurance policy however, would pay up to 75% of your usual income, comfortably covering the costs of your living.

Some employers will provide a more comprehensive benefit than statutory sick pay. Therefore, it’s important to check if this applicable; as this may mean that your deferral period can be extended which can, in turn, lower premiums.

Myth 5: It’s the same as PPI

Although they may sound similar, income protection and payment protection insurance (PPI) are not the same products. PPI insures a specific loan repayment, whereas income protection is designed to cover a portion of your income. If you found yourself unable to meet your mortgage repayments due to ill health, PPI would be on hand for this, but what about all the other inevitable expenses? This is where income protection comes in.

Myth 6: It’s not necessary if you have critical illness cover

Whilst critical illness insurance is important, unlike income protection, it would not pay out if you were unable to work due to injury or if you developed a non-critical illness. For this reason, income insurance may be worth considering along with critical illness cover, as this would cover a wider range of eventualities.

Myth 7: It’s not for you if you’re self-employed

Self-employed people can get income protection insurance, but be prepared to provide the relevant documentation. If you’re self-employed, your income may be more variable, so it would be beneficial to regularly review your policy to ensure that you’re covered for the amount of money you require.

Myth 8: It takes too long to apply

Whilst this may have been true in the days of dial-up-internet and telephone brokers, thanks to user-friendly websites, it is now easier than ever to search, compare and buy income protection policies.

If you’re interested in buying Income protection and want the best deal possible, consider using a commission free broker like Best Price FS to compare income protection insurance quotes.

Four Forward-Thinking Ways to Lower Life Insurance

In a time of tight purse-strings, each and every one of us is looking to lower our monthly outgoings. Life insurance should be no exception: the value of being covered by a policy should be more evident now than ever, but that doesn't mean you should be sacrificing quality when cutting costs.

These four forward-thinking ways will help send you on the path to getting cheap life insurance, leaving more money in your pocket.

Tip #1: Go commission free

Commission is how insurance companies cash in on your policy, and this often hidden cost essentially inflates the price of a product. Why not burst their bubble and start getting more for less?

Buying through a broker offering commission free life insurance is an easy way to save over the long term. While you’re normally asked to pay a small, initial fee, this will be a one-off, and will work out cheaper compared to a commission-based premium. This way, you’ll have the satisfaction of knowing that your money is getting you the best quality cover available.

 

Tip #2: Be a cynical shopper

While a new cuddly toy may be just the thing you’re looking for, free fountain pens and reduced gym memberships are superficial rewards designed to catch your eye.

Although you’ll enjoy these perks initially, chances are you’ll be paying for these in the long run in some way or another, usually in the form of higher premiums. I’m certainly not telling you to say no to a free lunch, but don’t be drawn in by these offers unwittingly. Be insurance-deal detectives and do your research: some companies may be offering the same cover for a cheaper price in the long run, although minus the meerkat.

 

Tip #3: Set the right term

Mapping out your long term financial plans is part and parcel of the search for an insurance policy to suit you. Why take out cover for a 30-year period when you know that in 25 years’ time your outgoings will be greatly reduced?

Generally speaking, most people take out life insurance to last until they’ve paid off the mortgage, or until the children leave home. The financial stability following such milestones means that insurance cover may not be such a necessity. Therefore, working out just how long you need to be covered for can be an easy way to ensure unnecessary spending.

 

Tip #4: Stay on the ball

Lifestyle choices affect how insurance companies view you and your risk factor, and so changes for the better could save you a few quid.

You may finally give up smoking, lose weight, or even pack in sky-diving; either way, it’s most definitely worth letting your insurer know. They’ll expect you to provide evidence of these changes, so make sure you’re able to do so, but asking for a reconsideration could be a really easy way of curbing costs.

These tips will set you on the right path, so that next time you compare life insurance quotes, you’ll know how to get the most for your money.