Great news for the 60% of families that currently have no life insurance – new research has revealed that the price of life insurance has fallen for the second year in a row.
Many people are still putting off buying life insurance, despite it being pound-for-pound one of the most cost-effective insurances you can buy – more so than car and home insurance.
This is crazy when you think that there are £2.6trillion of assets in the UK that are currently financially unprotected. Those assets, whether they are houses, cars or other property, could be stripped away from a person’s family after their death, right when they need it most.
A lot of people just think that ‘that’ll never happen to me’ but the truth is that on average, a child somewhere in the UK will lose a parent without life insurance every 36 minutes. Could your family cope with mortgage payments, bills and other expenses if you weren’t around?
Good thing the rates are relatively low at the moment, isn’t it?
However, a change is coming. The European Court has passed rules, set to come into effect in December 2012, that prevent companies charging men and women different prices based on gender. Prices could rise by around 30% for some customers, meaning that in order to take advantage of the lower rates, the millions of uninsured need to act now.
In fact the average payment for a £90,000 Decreasing Term policy held by a 39-year old female over 21 years could cost her an extra £1,000-£1,800 after the rules are put in place.
For now though, the average monthly premium for standard-term life insurance policies has fallen from £14.09 in January 2011 to £13.35 at the start of this year, equating to a 5% drop.
Analysis by Sainsbury’s Life shows that shopping around could save consumers around £100 a year on a level-term policy, while policies including Critical Illness Cover have a range of over £200 a year between the cheapest and dearest premiums. On a 20 year policy you would be paying up to £4,000 more!
Simon Moore, Managing Director of Protected, said:
“The fact that life insurance premiums continue to be competitively priced is great news for our customers. But this research clearly shows that in order to get the best level of life insurance cover for your family at a competitive price, it’s vital to start looking sooner rather than later.
I am concerned families will not be able to afford the same level of cover next year, but more worrying is that Life Insurance is not the first insurance on a customer’s shopping list. Home insurance protects your home from damage, car insurance so you are legal to drive and it can be fixed but life insurance allows you to keep that home and car and afford food and clothes should the worst happen. It probably should be the first insurance families purchase!”
At Protected we have a mission to help those who don’t have protection. We believe that cover is essential for everyone, with or without dependents; that’s why we discount all of our policies and with our Lowest Price Guarantee, we promise to be cheaper than any bank or IFA.
One of the most widely-heard myths about life insurance is that it’s too expensive. Not only is that not the case – you can get covered with us for as little as 17p a day – but at the moment coverage is the cheapest it’s been for two years!
We want to prove that this myth is false – if people think it’s too expensive now, they certainly will when the EU rulings force the price up 30%.
If you suspect a family member or friend has no life cover then please let them see this article, otherwise search online to see how much you could save with Protected.
Research courtesy of Sainsbury’s Finance.