The complicated world of life insurance is sometimes a complete mystery to those not involved directly in the industry itself. According to the Association of Insurers (AIB) report, the UK industry is the largest in Europe and the third largest in the world.
One of the best ways to navigate around the shoals of the various policies and protection available is to go online and compare life insurance quotes. The AIB‘s report shows that a massive 28 .4 million of us invest in some type of life insurance policy but industry observers point out that the cost of policies has never varied so much as it does currently.
Online price comparison sites are a good place to start a search for the best type of policy and will give the customer a free estimate of the cost of these policies. Personal circumstances, health, medical history, occupation, the number of children and even the area where a person lives are all factors that will have to be taken into account.
Smokers are penalised heavily for their habit. Premiums can increase during the term of the cover and this must be taken into account when trying to evaluate a long-term family budget. The competitive nature of this industry means that there are currently great savings to be made in the cost of premiums so it really is a good idea to shop around.
As of December 2012, the cost of premiums for women is set to rise. The ‘gender neutral’ law determined by the European Court of Justice has ruled that gender inequality assessments as previously practiced by the insurance industry have to cease by December 21.
This ruling is set to increase the cost of premiums for women; which many feel is unfair. Insurance actuaries determine the cost of a policy by determining risk, for example many women paid consistently less for the car insurance as successive reports revealed that women have far fewer car accidents than men.
Despite this analysis, women will now pay the same price as men for their car insurance. The prices differed for life insurance too as women tend to live longer and often work in less hazardous and arduous occupations. Yet, after December, all will have to pay the same premiums regardless of gender.
Regardless of the ECJ ruling, the existence of life insurance whether it be a fixed term or whole of life policy, means that the beneficiaries can rely on future financial security should an unexpected death take place. Mortgage protection and income protection together with a life insurance policy mean the horrors of losing the family home or having to undergo a substantial loss of income following a redundancy can be avoided.
Death is also an expensive business and the last thing that a grieving family needs to be concerned about is whether or not they can afford to bury the deceased. There are so many different types of insurance that some professional advice might help, but if you are carrying out your own research remember to read the small print of any policy document.