A life insurance policy provides you with the peace of mind that, should the unthinkable happen, the family you leave behind will be financially secure. Depending on your individual circumstances, the price of that peace of mind could cost less than you think. If you've bought life insurance through a bank you may want to compare life insurance quotes to see if you can get a better deal.
We know that finding the best life insurance deals can be confusing, so we're taking a look at the difference between buying life insurance through your high street bank versus a price comparison service such as Compare Cover.
Most banks and building societies have arrangements in place with one or more insurance companies that permit them to sell policies to their banking customers. In this context, your bank acts as an intermediary - or middleman - between you and the insurance company issuing the policy.
Although it can be convenient to buy life insurance through your bank, you may be able to get a better deal elsewhere so it's always a good idea to shop around.
If you have a standard repayment mortgage, mortgage protection life insurance (also known as decreasing term life insurance) is designed to pay off the outstanding debt you have on your home in the event of your death. After making a claim, your mortgage should be paid off entirely - meaning your loved ones won't have to worry about losing you and their home in quick succession.
To find out more about this type of policy, take a look at our Mortgage Protection Life Insurance page.
For obvious reasons, mortgage protection life insurance is commonly purchased at the same time as a mortgage. As a result, many people find it easier to purchase this type of cover through their bank, building society or mortgage lender. However, under these circumstances, people often buy the policy presented at the time; there's often little flexibility to consider all the options or scope to search multiple providers for a cheaper deal.
Banks and building societies are unlikely to provide any discounts on premiums through giving up commission they receive from the insurance company which means it's up to the individual to find better value elsewhere.
If you have bought a life insurance policy from your bank or building society, it doesn't mean that you're locked into that policy forever. Providing your health hasn't deteriorated and the policy was purchased in the past few years, in most cases, it is relatively simple to switch to a cheaper policy that offers better value.
If you find a cheaper life cover quote that offers you the same - or a better - level of protection as your existing policy, to switch, simply set up the new cover. Then, once the policy becomes valid, all you need to do is cancel your existing cover. Unless your health has deteriorated, switching to save money really can be that simple and remember, any saving on your monthly premium will apply throughout the term of your policy which can mean significant savings overall.
Note: It is important that you don't cancel your existing policy until the new one is accepted and in full force or you risk not being covered in the event of your death.
At Compare Cover we're committed to helping our customers protect their world for less. As a specialist online comparison service, we aim to make sure you can find cheaper life insurance policies than those offered by high street banks and building societies.
We are able to do this because unlike most banks, we use some of the commission we receive from the insurance company to reduce the premiums that you are charged. What's more, you can use our life insurance comparison service with no obligation and get quotes from leading providers from the comfort of your own home.
When using Compare Cover you have the freedom to explore all your options and understand the features and benefits of each product through easy to access information. Our comparison tool is intuitive and incredibly simple to use, meaning you can search through all your quotes easily to find the one that is right for you. Furthermore, if you do find a better deal anywhere else, you can contact our customer service team free on 0800 915 2926 and we will match it.
When buying life insurance cover through Compare Cover, you have the flexibility to find the right policy for your needs at the best price possible.
To easily compare life insurance quotes, use the Compare Cover comparison tool today. It's free, fast and allows you to instantly view and compare quotes in one simple search. If you're ready, compare life insurance quotes now.
Are you planning to move into a new home? If so, you may be wondering, what is mortgage protection insurance? Find out more in our guide.
Have you bought life insurance through a bank? Discover why you may want to compare life insurance quotes to see if you can get a better deal.