When looking for the right life cover for you, getting a life Insurance comparison between companies is a smart idea, especially when you look at the long term cost, as well as the immediate price.
LIFE INSURANCE COMPARISON
Price is one of the main driving factors when looking for life cover online, but there are a couple of other factors to consider when getting a life insurance comparison.
LONGER TERM COST
How much is your cover going to cost you over the long term? As for accumulative premium projections over a ten year and 20 year period, as well as to age 65.
Assessing your accumulative premiums will give you a real idea of whether your life insurance will be affordable now but also will be affordable later as you get older.
You should consider stepped premium option and level premium option. The difference between the two options is that the stepped premium option will start much cheaper and increase each year as you get older.
Stepped premium is the most common type of life insurance because of the higher value in the short term.
The level premium option is where your premiums start higher but stay the same throughout your period of cover. In other words, it does not keep increasing each year, and if you are going to have your policy longer than ten years, this is something you should consider.
YOU CAN HAVE BOTH
You can also have some of your cover on the stepped premium for your shorter-term needs and have some of your cover on level premium for the long term such as your mortgage.
The difference between companies and life insurance products can vary dramatically so long term cost should also be part of your life insurance comparison.
ENHANCEMENTS AND ADD-ONS
These may not be a priority now, but as life and affordability changes, you may want to add these at a later stage in life. Enhancements and add-ons can be features like;
Being able to increase your life cover when you take out a mortgage, without providing any evidence of health. This can be crucial, especially if your health has changed since you took your policy out because any new insurer may exclude any new medical conditions or even decline you live cover or;
Adding Trauma cover so your cover can include serious illnesses such as cancer, and some companies will cover up to approximately 40 types of conditions.
Make sure that you can add enhancements to your life cover and find out what additional enhancements will be included in your new policy when you get your life insurance comparison.
ARE YOU GOING TO REPLACE EXISTING INSURANCE?
Be careful when you are replacing existing insurance with new insurance. In some cases, you may miss out on benefits you get with your current cover, that the new insurer may not provide you.
This is not always the case, and is usually in the fine print and may not be apparent when taking out the new cover.
A good adviser understands both and can make you aware of what you currently get with your existing insurer and may miss out on if you moved.
WHAT TO DO NEXT?
We have access to most insurers in New Zealand so we can give you your life insurance comparisons as well as benefit comparisons. We can also assess your needs and make our recommendations based on your specific needs.