Best Deal Insurance

Avoid the 13 mistakes people make buying life insurance

Which of these 13 "upsetting mistakes" will you make buying life insurance?

UPSETTING? What do I mean by “upsetting”? Well, hear this fact: Life insurance companies reject up to 25% of claims.

I think that’s upsetting!

Just imagine: how it would feel to know that, after your death, your insurance company was trying to wriggle out of the promises it had made to your loved ones!

This new report gives you insider tips for avoiding these traps… so you can have peace of mind knowing your family and home will be safe and secure if anything happens to you.

I’m David Thomson, the Founder of Best Deal Insurance. I created Best Deal for 2 reasons:

1) To find you the lowest cost insurance (see my “Bet-You-£200-You-Can’t-Find-A-Lower-Price” Guarantee for details).

2) More importantly, to make sure your insurance actually pays out.

As we say here…

Right, here are the 13 mistakes you’re most likely to make when buying life insurance… plus how to avoid them, so you can have peace of mind knowing your loved ones are in safe hands.

If you don’t have life insurance, chances are your loved ones would be hit hard financially if you were to die.

“As soon as there is someone who depends on you financially, you need life insurance. That may be a partner who you share a mortgage with, a spouse, or children – anyone who would struggle for money as a result of your death.”

It’s useful to list all the people who would be affected if you died.

Now consider how they would cope financially:

Most people find that life insurance is essential. You work hard to build a safe future for your family. Life insurance makes sure that they will get that future – whatever happens to you.

Have you seen the comedy sketch where the guy is phoning life insurance companies from a hospital bed? Not surprisingly, they won’t listen!

The sooner you get life insurance, the better. In fact, the best time to buy life insurance is when you’re fit and healthy. That way…

1) you’ll get much lower rates
2) you’ll be covered (you never know what might happen tomorrow)
3) you’ll get the job out of the way!

Plus, life insurance premiums are currently at their lowest rate ever.

Which means there’s no better time than now.

If you live a busy life, you probably hate the thought of researching life insurance.

Some people try to save a few pounds by going the "DIY route" - and becoming a life insurance ‘trainspotter’. The problem is they might never get round to finishing the job... or even worse they might end up getting the wrong type of insurance! We recommend you just find a broker that you trust, and let them advise you.

Then you can get on with your life!

Many people are surprised to see how affordable life cover can be.

It can cost less than 16 pence per day, which is less than the price of half a bag of Wotsits.

In the UK, there are 38 insurance companies.

Some are outrageously expensive AND often don't pay out! They prey on customers who are too busy to shop around. Others give you excellent protection.

To get the best prices, you need to use a broker or comparison site...

“Some insurers reclaim the costs of cheap premiums by cutting back on staff numbers or training, or by fighting every claim, or delaying payment for months… The best way to choose a policy is through personal recommendation [from someone who has claimed] or, failing that, by consulting an insurance broker who knows his stuff.”

However, some brokers just search their “preferred partners” – in other words, it’s a “stitch up”. Insist on a broker that searches the whole market.

As you can probably guess, Best Deal searches the whole market. And what’s more, we keep track of which insurance companies have reputations for paying out, so we can steer you away from the naughty ones.

Many insurance companies play a clever little trick. It goes like this…

1) They get your attention by offering a really low price, which you are unlikely to qualify for. In the trade, this is called the “screen price”.

2) Then, after you have applied, and sometimes waited weeks for your health records to be checked, they say…

“Sorry, we can’t offer you those rates because…

- delete lame excuse as applicable!

3) Then they offer you a much higher “revised price” – which in the trade is known as the “real price”.

4) By this point, they know full well that you won’t want to start again from scratch… and that you’ll probably just shrug and sign a big fat cheque to them.

Best Deal helps you avoid this problem. By calling us, you’ll benefit from our specialist knowledge of which insurers tend to give the best real prices. We will ask you key questions about your health and family history… and then our unique RealChecker™ system will suggest the insurance company that is most likely to give you the lowest real price, based on our wealth of experience.

If you answer a question wrongly on the application form your insurance might not pay out! (The insurance companies call this ‘non-disclosure’)

It’s essential that you understand the questions and don’t leave anything out, even if it seems trivial.

It’s a sad fact that some insurance companies have teams of people trained to look for reasons not to pay out.

At Best Deal we get around this in two ways:

(i) Our application form contains no gobbledygook, and has loads of help in crystal clear English, so you can be confident you’re answering the questions right.

(ii) Even better, if you phone us instead, on Freephone 08000 192 305 , you’ll get a highly-trained advisor, who can give you loads of advice on making a “bulletproof” application.

One of the main reasons why claims get rejected is what’s called “non-disclosure”. Non-disclosure means you (or your broker) forget to mention something to the insurance company.

Now here’s the catch: some brokers play the “Chinese Whispers” trick.

They twist your answers slightly when passing them on to the insurance company, to increase the chances of them getting the sale.

To get around this, make sure you use an insurance company that records all their calls. With today’s technology, why wouldn’t a broker record their calls?

At Best Deal, all our phone calls are recorded, which means that even if our advisors were to type up your answers wrongly, you would still be able to claim. And we keep the recordings in a safe for 100 years.

Here is a quick and simple guide to which type of life insurance cover you need…

Level term OR decreasing term?

To make sure your mortgage payments would be made, even if you die, you usually need decreasing term insurance (unless it’s an endowment mortgage)

To make sure your dependents (usually family) can survive if you die, you usually need level term insurance.

You might choose to have a combination of both.

However, sometimes you can get level term insurance at bargain rates, so you only have pay a few pounds more for loads more protection.

Guaranteed premiums OR reviewable premiums?

Guaranteed premiums means your monthly fee will always stay the same, whatever happens. With reviewable premiums the insurance company is allowed to change your monthly fees if they feel like it.

So you might think guaranteed premiums are always better. Problem is, they usually cost more. (For the same reason that fixed mortgages usually cost more than variable ones). Reviewable premiums can be a bargain IF you avoid the insurance companies that have reputations for hiking up the cost of their premiums.

For straightforward advice on which type of combination of policies is best for you, use our simple tool that tells you what insurance you need or call us for free advice on 08000 192 305 .

If you die, your life insurance payout is likely to be hit with a big tax bill. However, you can keep the Government’s grabbing fingers away by writing the policy “in trust”.

If you use a “no advice” company, you can obtain the forms and create the trust yourself. If you use a company that gives advice, such as Best Deal, this will be done for you.

It’s important that you have enough life insurance cover. In particular, many people forget that their loved ones will need an amount to cover monthly charges.

Covering the mortgage is a start, but there needs to be food on the table!

Sometimes daycare for children is an issue. Again, use our simple tool that tells you what insurance you need to make sure you’ve got the right amount of protection or call us on 08000 192 305 for free advice.

“You are actually five times more likely to suffer a critical illness than you are to die before age 65, as heart attacks and cancer are more survivable than ever before.”

…what more is there to say? You’re five times more likely to need critical illness insurance as you are life insurance.

The life insurance market changes regularly. Getting a bargain today is pointless if you miss out on a much better deal next year.

Listen, we know you’re too busy to be constantly shopping for insurance(!). That’s why your insurance broker must be constantly checking that your policy hasn’t become a stinker.

Best Deal regularly checks the market and lets you know if something much better comes along. Don’t worry about hassle either – switching is easy because we already have your details.

Well done for getting this far. But don’t put the kettle on yet! Peace of mind is only 2 minutes away…

To find out which life insurance is best for you, use our simple tool that tells you what insurance you need now.

Or get a FREE instant quote, by clicking here.

Or, easiest of all, call one of our friendly advisors now for FREE advice, on 08000 192 305 (this is the quickest and most effective option – and you avoid the paperwork and typing!)

Wishing a safe future… for you and your loved ones,

David Thomson
Chairman
Best Deal Insurance Ltd

P.S. If you’re the kind of person who reads the last page of a book first, here’s the quick version: the easiest way to avoid all 13 mistakes – and get great FREE life insurance advice – is to call us now on 08000 192 305 . Or get a FREE instant online quote by clicking here.