Decreasing Term Life Insurance News - protected.co.uk

Life expectancy for Britons aged over 65 has increased, a new report says, which could mean that older individuals who think there is no need for life insurance may want to rethink their plans.

Such individuals are also better off than they were ten years ago, the Department of Work and Pensions (DWP) reveals, so they may want to put any extra cash towards a life insurance policy.

This means that there are plenty of new opportunities opening up for older generations, the DWP continues, but for adventurous seniors off on round-the-world trips or other ventures, decreasing term life insurance could be a policy they may want to consider.

Indeed, mortgage repayments on a home could be protected, alleviating some of the financial burden on a partner should something unexpected occur.

"We should celebrate the fact that people are now living longer, healthier lives. In the next 20 years more than half of us will be over 50," comments minister for pensions reform Rosie Winterton.

Younger people are increasingly looking toward their future and stashing cash in a pension pot, the National Association of Pension Funds reveals.

Young people are not as pension-pot shy as they are made out to be, a claim suggests, news which could also mean they are more aware of the importance of life insurance.

Such individuals need to be equipped with more knowledge about pension schemes so that they can make informed decisions, states Mark Brookes, spokesperson for The National Association of Pension Funds.

However, a recent survey by the organisation reveals that confidence in pensions is falling during the current economic crisis.

But with such financial difficulties, it could be said that paying into life insurance cover is important to make sure loved ones are protected - especially younger people with small children.

"Many of them [younger people] do realise that they have to put money aside for their future retirement, even if they feel it is a long way off," he says.

Indeed, making sure a family home is protected through cover such as decreasing term life insurance could be essential, after the Daycare Trust reveals that nursery care for kids under the age of two can add up to around £8,500 a year for mums and dads in England.

Individuals struggling with their mortgage may find that they are cutting back on other areas, such as life insurance, in order to fund their repayments.

Cash-strapped borrowers, however, should ask their lender for help if they feel the financial pressure is building up, advises David Kuo, head of personal finance at Fool.co.uk.

Taking a mortgage payment holiday or extending the period of a loan are options that homeowners may want to consider, he states.

Indeed, such financial help may allow people to free up some cash to put towards decreasing term life insurance, which may protect the mortgage payments on a home should something unexpected happen.

Furthermore, parents worried about their family home may be missing out on over £3,000 a year of childcare tax benefits because of their pride, asserts founder of Moneysavingexpert.com Martin Lewis.

With extra financial help, parents may then be able to afford comprehensive life insurance which could protect their home and loved ones.

Over 60 per cent of Britons claim to have started a new health and fitness regime or diet in the new year, a claim suggests, while such a lifestyle boost could be rewarded with cheaper life insurance premiums.

And 70 per cent of such individuals plan to start walking as a way to shed the pounds, Prudential reveals.

Indeed, 19 per cent of people state that a health scare pushed them into amending their diet and fitness bad habits, although such a reminder may have also highlighted the importance of protecting loved ones with life insurance.

Commenting on the fact that staying healthy can lower life insurance premiums, PruHealth's chief executive officer Shaun Matisonn says: "In uncertain economic times like these, that extra financial incentive to get fit has never been more important and PruHealth's philosophy is to reward our members for making the effort to stay healthy."

And having cover to protect a home such as decreasing term life insurance could be important after Martin Lewis, founder of Moneysavingexpert.com, reveals that families could be missing out on around £3,000 on childcare tax credits.

Individuals should only be given a pill to help with obesity if making changes to their lifestyle fails to help them, a practice which may affect a life insurance policy.

According to a spokesperson for the Department of Health, improving diet and nutrition and taking up regular exercise are options that individuals battling a weight problem should try before resorting to medication.

Life insurance policy holders may want to know that 54 per cent of people in London eat takeaway and fast food at least once a week - although those in Norwich are the least likely to do so (33 per cent), a Bupa UK Health Insurance poll reveals.

Commenting on the obesity pill, he states that "anti-obesity medicines can help to improve outcomes - especially for those with heart disease and diabetes - provided they are prescribed and managed as part of an overall weight management programme".

People concerned about obesity-related serious illnesses may want to take out decreasing term life insurance, which can be taken out on its own or jointly and can cover the outstanding amount owed on a mortgage.

However, the Oxford Institute of Ageing recently announced that individuals are waking up to the consequences of their unhealthy lifestyles.

Individuals who rely on their savings to give them a helping hand may find that their money is stretched to tighter limits, one financial expert claims.

Decreasing interest rates have left savvy savers enjoying less of a return than they used to do, David Kuo, head of personal finance at Fool.co.uk, states.

This could mean that less money is available to be put towards a life insurance policy - which may cost individuals further down the line.

Someone who previously enjoyed a monthly return of £50 will find this has been slashed to £10, he continues.

"For people who have been relying in some part on their savings income, those people will suddenly find that their money is not going as far," Mr Kuo states.

One type of cover Britons may opt for is decreasing term life insurance, which is specifically designed to protect a repayment mortgage.

This could be even more important after Mr Kuo claims that workers may have to take a pay cut in order to maintain their job security.

Recent reports that mouthwash containing alcohol can trigger oral cancer are based on unproven links, it is suggested, which could be good news for life insurance holders.

The British Dental Health Foundation makes the claim after an academic panel at the organisation carried out a review of all the evidence.

It was recently reported that people who smoke and drink alcohol are at a particular risk from their dental hygiene habits triggering mouth cancer, which could have led some to update their life insurance cover.

But Simon Howell, director of campaigns for the British Dental Health Foundation, says: "The public therefore should not be worried about using mouthwashes containing alcohol that they think may increase the risk of them developing mouth cancer."

However, it could still be a wise move for individuals to take out cover such as decreasing term life insurance, which may protect the mortgage repayments on a family home should a loved one be diagnosed with cancer.

According to BMC Oral Health, socially deprived people are more at risk from oral disease.

Middle-aged Britons finding themselves entering into a second marriage or trying for a baby may want to make sure that they have comprehensive life insurance in place to protect their loved ones.

A report by Standard Life reveals that more people are adopting a young at heart mantra and not prescribing to the tradition of a quiet retirement.

Individuals are also using their free time to take the plunge when it comes to experiencing life's adventures, the organisation claims, which could also mean that suitable life insurance should be in place to cover such journeys.

John Lawson, head of pension policy at Standard Life, comments: "Once we reach 50 we can effectively retire when we want and for many it is the time they realise that life-long ambition of travel or pursue specialist hobbies."

Cover such as decreasing term life insurance could bring peace of mind for those Britons who are responsible for a young family at an older age.

Mortgage repayments on a family home may be protected, taking some of the financial burden off loved ones should the worst happen.

Keeping mentally active and alert can have a positive impact on how long people live for, it is asserted.

Life expectancy is increasing by two years every decade, claims Club Vita, a statistic which could impact upon the life insurance policies of Britons.

Working longer into retirement can also be of a benefit to the health of individuals, who could enjoy cheaper life insurance cover as a result.

Commenting on the issue, Nick Flint chief executive of Club Vita, says that for every hour that a person lives, life expectancy increases by 12 minutes.

"More people are keeping their minds healthy going into retirement with a passion for crosswords and Sudoku which does lead to a longer life," he states.

Indeed, allowing an older workforce will keep the nation healthier as a whole, Mr Flint adds.

Research by the organisation reveals that 74 per cent of people refer to their family's medical history when they discuss issues surrounding life expectancy.

Over 60 per cent consider their diet as a factor contributing to their lifespan, although getting cover such as decreasing term life insurance could ensure that should a lifestyle-related illness be diagnosed, the mortgage payments on a family home can still be met.

Cash-strapped families could find that their savings are dented by the lowering of interest rates by banks and building societies, which could push life insurance policies further up the agenda.

Indeed, the financial fallback that people may have in place could be dwindling as financial services firms take the lead of the recent Bank of England interest rate cut, MoneyExpert.com warns.

The average annual equivalent rate now stands at 1.45 per cent, the website reveals, meaning that for parents looking to shore up cash as a financial backup for their children may need to review their life insurance so that it suits their individual circumstances.

High-performing instant access savings accounts have also plummeted by 23 per cent over the past 12 months, the financial website notes.

"Many banks and building societies aren't out of the woods yet and you'd think more would be being done to reward customers who put their money into savings accounts," suggests director of MoneyExpert.com Sean Gardner.

And with recent findings from Life Trust that people's pension pots are also dwindling, having comprehensive cover such as decreasing term life insurance could ensure that mortgage repayments on a family home are met should an income be reduced.

Individuals who are currently finding that they cannot afford to pay out for life insurance may need to get everything down on paper.

Writing down all outgoings - from mortgage payments to direct debits - can ensure that people keep a clear head when deciding what action to take regarding their finances, the Relax Group states.

And Carl Kroger, sales and marketing director from the Relax Group, advises those who are not too much in the red to cut out non-essentials and luxuries, which could make sure that the important things, like life insurance, are paid for.

"Debt management advice will help establish a plan that will sort out the whole debt problem in one programme that's personal to the individual and their specific needs," he says.

Once people are on top of their finances they could then afford to research the different types of life policies available, such as decreasing term life insurance, which may protect mortgage repayments should the worst happen.

Taking steps to protect loved ones through life insurance could be even more important after callcreditcheck.com revealed that many people in a relationship are concerned how they would financially cope on a reduced income.

People should be aware of the need for smoke alarms in their homes, according to one health and safety organisation.

Such devices are essential in ensuring the safety of those inside a building, urges a spokesperson for the Royal Society for the Prevention of Accidents.

And local fire stations will fit fire alarms for free, meaning that not only could a family be protected should a blaze break out, but could also result in life insurance policies not needing to be paid out.

"People seem to think it won't happen to me and so it's not on a priority list, or people just look over it. The thing is, if it is free as well, it certainly is better safe than sorry," the spokesperson continues.

Just five per cent of households had fire alarms 20 years ago, but now this figure has increased to 80 per cent, according to the government's Fire Kills campaign.

But should an unfortunate incident occur, cover such as decreasing term life insurance could protect the mortgage payments on a family home, relieving some of the financial burden.

People looking for ways to save money off their life insurance may want to ditch the cigarettes, according to one financial organisation.

Quitting smoking can cut the cost of life cover by around £216, moneysupermarket.com claims.

Indeed, when it comes to saving money on payment protection insurance, individuals could find an extra £357 in their household coffers, the website claims.

"While insurance is essential for financial security and peace of mind, it is important Brits only opt for a level of cover relevant to their needs and at the best available price," states Andy Leadbetter, managing director of insurance at moneysupermarket.com.

Household outgoings can be trimmed by over £2,350 if people took the time to review their finances and in particular, their insurance cover, he continues.

As such, investing in decreasing term life insurance may not only protect the mortgage repayments on a home, but could also be one of the more affordable types of cover.

Meanwhile, 60 per cent of adults recently told Gocompare.com that they would start 2009 by becoming more financially savvy, such as saving more and making the right investments.

Over one million workers claim that they are unhappy in their current jobs but cannot change careers because of the credit crunch, a survey reveals.

Despite being dissatisfied with their employment, 1.4 million individuals say that financial pressures mean they will have to stay put, uSwitch.com has discovered.

But 55 per cent of people state they will not accept a pay cut if they were to change companies, despite being unhappy at their current firm.

Indeed, depression or stress caused by their job could lead to the onset of more serious health problems further down the line, although life insurance could be a financial cushion should such a scenario occur.

Commenting on the findings, personal finance expert at uSwitch.com Louise Bond says: "As we go into 2009, households need to focus on recession proofing themselves - cut out unnecessary expenditure, shop around to reduce household bills and get back into the saving habit."

Placing some money saved into cover such as decreasing term life insurance could protect mortgage payments should a household's income be reduced.

In related news, almost two-thirds of Britons do not realise that advice regarding their future finances can be found at a high street bank, Halifax recently discovered.

Putting money aside for a life insurance policy may be a difficult task for many Britons.

Indeed, the monthly state pension for a single person - £439 - falls short of the £832 that people feel that they will need during their retirement.

According to a survey for Friends Provident , 57 per cent of individuals are expecting to live solely or partly off their state pension.

But with little spare cash, people may make some household cuts and life insurance could be one of the first to go.

"Even though it [the state pension] is a universal benefit, paid at an earlier age and worth more in real terms than in 1909, many people feel it is an inadequate benefit, insufficient for their needs," suggests head of corporate pensions marketing at Friends Provident Martin Palmer.

However, decreasing term life insurance - which could protect mortgage payments on a home - may be one of the more affordable types of cover on the market.

Meanwhile, over 80 per cent of people who stayed in for the recent New Year's Eve celebrations did so because they thought their money could be better spent elsewhere, NS&I discovered.