About Life Insurance
Life policies are probably the simplest type of policies to understand. I.E. You are insuring yourself (or somebody you have an insurable interest in) for an amount of money to be paid by the insurer in the event of your (or somebody else’s) death. There is very little area for doubt on these policies.
Where, to whom and what will be the tax implications in the event of the policy paying out is an entirely different subject. We will be happy to advise you on this subject as regards your particular circumstances and the benefits of placing life policies in trust.
So generally other than being aware of which of the three types of premiums you are being offered (explained below) and making sure the beneficiary does not end up with a large bill from the Inland Revenue it is just a case of looking for the cheapest premium. If you are fit, healthy and less than 60 years of age it's just a matter of using our request a quote to search the market for the cheapest premium.
If you suffer from any serious health problems or have a hazardous occupation etc you should seek good independent advice before placing a policy. In these cases different companies take very different attitudes to setting premiums. This is where The Health Insurance Shop can provide you with the expert advice you require.
GUARANTEED PREMIUMS. This is where the premium is set at the outset and will not rise at any time during the life of the policy.
REVIEWABLE PREMIUMS (Type A). This is where the premiums are set for a period of time, Usually 5 years. You pay this premium for the first 5 years and in the 6th year you will be told of any increase. It will happen again in the 11th year of the policy and so on every 5 years until the policy expires. These premiums are usually lower in the first periods.
REVIEWABLE PREMIUMS (Type B). This has been introduced recently by one Insurance company. It is where you pay the premium asked for the first 12 months and they then review it each 12 months (rather like car insurance policies).