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 can cost less than you may think.
To get the best deal however, it's vitally important that you consider all your life cover options thoroughly. The truth is, if you have bought a life insurance policy through your bank, the chances that you're overpaying can increase.
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 comparecover.com.
Most banks and building societies have deals in place with one or more life insurance companies that permit them to sell policies to their banking customers. In this context, your bank acts as an intermediary - or middle man - between you and the insurance company issuing the policy. The overheads associated with running a bank such as maintaining and staffing a network of branches are reflected in the higher premiums that banks charge, and it's you left footing the bill. In an article published by The Telegraph, Nicola Blackmore reported that by buying life insurance policies through banks and building societies, customers are sometimes overpaying by thousands during the term of their policies.
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 house 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 for a cheaper deal.
Banks and Building societies are unlikely to provide any discounts on premiums through giving up commission which means it's up to the individual to find better value elsewhere.
If you have bought an expensive 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 comparecover.com, we're committed to helping people 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, using our life insurance comparison service is free, so you don't have to pay a single penny towards finding the best deals.
When using comparecover.com 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 and we will do everything in our power to beat it.
When it comes to finding the best life insurance deals, the closing argument in the battle of high street banks versus comparecover.com is spearheaded by value.
When buying life insurance cover through us, you have total liberty to search through all your options thoroughly. This in turn, provides the flexibility to find the right policy for your needs at the best price possible.
To easily and quickly compare all your life insurance quotes, use the comparecover.com comparison tool today. It's free, fast and allows you to instantly view and compare quotes in one simple search. Click here to compare quotes now.
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