Cost is a common barrier for many people who are considering life insurance.
But life insurance doesn’t have to be expensive. There are plenty of options available for affordable life cover that will provide you and your family with invaluable reassurance that they are protected financially.
In today’s blog post we will dive into a few of the common questions we receive from clients looking for affordable life cover.
Do I need it?
The first thing many people ask, is do I really need life insurance?
The short answer is, it depends.
Life insurance isn’t essential for everyone however we recommend people of all ages consider taking out a policy. If you have dependants (children, a partner or other family members) who rely on your income or salary, we suggest exploring the options available for affordable life cover.
Before deciding on whether life insurance is right for you, ask yourself this simple question: If you were to pass away would your loved ones have the means to pay off your mortgage, cover monthly living expenses and maintain their current lifestyle?
Does affordable life cover provide the protection I need?
Although it is true that there are many cheap life insurance policies that are best being avoided, it is perfectly feasible to find affordable life cover that will provide you and your family with the peace of mind you’re looking for.
This is where our expertise can help.
Our knowledge and experience of the life insurance industry allows us to find you the policy that meets your needs at a price you can afford.
We research the entire marketplace for you, drawing on our strong relationships with insurance providers to find you a deal that provides the maximum amount of cover at the best possible price.
Which types of life cover are the most affordable
Unfortunately there isn’t a cut and dry answer to this question due to the number of variables that come into play, however there are types of insurance that generally come with a lower price tag than others.
Level term and decreasing term
Level term and decreasing term are both affordable life cover options.
Level term plans are very simple, with pre-agreed lump sum being paid out to your loved ones if you were to pass away.
Decreasing term plans, as the name suggests, have a potential pay out that decrease over the policy term, usually in parallel with a liability such as a mortgage. For this reason, they are often a cheaper option and a perfect fit for those whose main concern is their family’s ability to pay off their mortgage.
Family income benefit
Rather than pay out as a lump sum, this form of insurance will provide your family with a monthly income for the remainder of the policy. This means the value of the potential pay-out will decrease over the course of the policy terms. Policies of this type are often, but not always, a more affordable life cover option.
Joint life cover
If you are insuring two people, such as yourself and a partner, a joint life cover policy come at a cheaper cost than two separate policies.
However, we recommend comparing a number of options to make sure. In some cases, a joint life policy can be more expensive. For example, if one of the policy holders is in significantly poorer health than the other, this may drive up the overall cost of the policy.
Email us today or call 0191 491 4119 to speak with one of our specialists about finding you the best possible solution for your needs.