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What should I look for in UK Life Insurance Company?

Choosing an insurance company represents a large part of choosing a life insurance policy and it is vital that you make the right decision. In order to do this you should research into the background, stability, potential and popularity of the company (in terms of customer satisfaction) and choose a company that leaves you feeling secure and comfortable in the knowledge that your money will be tied up in the company for many years to come. 
Most life insurance companies offer other services, such as motor insurance, house insurance, mortgages loans, sometimes even products such as internet access or telephone services. Insurance is big business and many large corporate businesses are developing finance schemes that are sometimes almost as profitable for the company as the main area of their business. These days, many supermarkets, such as Tesco or Sainsbury’s are offering insurance and banking services and life insurance is just one of the services that they offer. It is the developments made in these areas that have led to increased profits for many companies and this is good news for the consumer as it means that these companies are getting more and more successful and therefore more and more stable financially. As a life insurance policy is a long term investment it is vital that you choose a company that is in a sound financial position, or you could end up losing many thousands of pounds. 

Most companies offering life insurance services offer either term or whole life insurance. Term life insurance is a policy that lasts for a set period of time and if you die within this period your beneficiaries will receive a pay out. Whole life insurance, as the name suggest, is the policy that lasts until the death of the policyholder. The fundamental difference between the two is that the your beneficiaries are guaranteed to receive the pay out when you die if you take out a whole life insurance policy but if you take out a term life insurance policy and outlive the policy your beneficiaries will receive nothing. 

Most life insurance companies also offer critical illness life insurance either as a stand alone policy or as an addition to a standard life insurance policy. Most companies will only allow critical illness cover up to the age of 60 and if you are diagnosed with a critical illness it must be listed in the terms of your insurance if you are to receive a pay out from the insurance company. For more detailed information on critical illness insurance see our page on the subject which can also be found in the FAQ section of this website. 

Customer satisfaction is also highly important, particularly if you are going to be taking out a whole life insurance policy. You need to know that other customers have been happy with the services provided and should look into why some customers might not have been happy. Just because you see a message on a forum stating that one person has been unhappy doesn’t mean that the company is dodgy – always look for a large amount of feedback and make an informed decision when you have access to it. 

If you are looking into a whole life insurance policy you should also look into the investment possibilities. Most life insurance companies will offer investment strategies of varying risk and whilst you might make more from a high risk policy you might also lose everything. Seek professional advice based on current and forecasted market trends before making any decisions – you might be better investing the money yourself and leaving it in your will to your beneficiaries. Sometimes customers have little control of the investment side of things in a life insurance policy and if this is not something that you like the sound of you need to know about it before you buy.

Disclaimer: The information contained on this page is not intended, nor should it be construed as providing any form of financial advice or guidance as to which insurance product/policy is right for you. If you are unsure as to which product meets your requirements/needs you should always seek advice from an Insurance Professional.

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