Cheap Life Cover
Life cover is an essential expense to make sure your dependents are properly cared for after your death. However, because of the rising cost of living it is more difficult than ever to make ends meet. Failing to get life insurance is not a viable option, especially when there are cheap life cover options available.
Term Life Insurance Versus Whole-to-Life
Term life insurance is taken out for a specific period of time, referred to as a term. The amount paid if you die during the term of the policy is called the sum assured. If you do not die during the term of the policy, the sum assured never gets paid and term life cover carries no cash value. Whole-to-life insurance pays a guaranteed sum assured upon the death of the policyholder whenever that occurs and build cash value over time, making it more expensive than term cover.
Whole-to-life insurance is traditionally used for estate planning as people get older to meet inheritance tax liabilities. There are also endowment policies that combine term life cover with investment savings and this type of assurance can be quite pricey. Term life insurance is a simple, flexible form of cover that can be tailored to suit all your needs for an affordable premium.
Only Get The Cover You Need
There are several different types of term insurance, including decreasing, increasing, level, renewable, convertible and index linked. The sum assured goes down over the years with decreasing assurance and this type of insurance is usually used to cover a mortgage. Increasing and index linked insurance increase the sum assured over the years to account for inflation. Level term insurance remains the same throughout the term of the policy, making it simple and straightforward. Renewable assurance can be renewed without updated medicals, which is ideal for someone suffering from a health condition. Convertible life assurance is term cover can be converted later in accordance with with your changing needs and budget to either whole-to-life or endowment. Choose only the cover you need to pay the lowest premiums. For example, the decreasing life assurance policy you choose should just cover your mortgage payments.
Stay In Good Health
Your life insurance premiums are determined by the level of risk that you will cash the value of the policy. To get cheap life insurance, it is necessary to remain in good health and avoid smoking or drinking. Your habits, age, sex, medical history and current health are all factors used to determine the life insurance premiums you pay.
Choose Your Occupation Carefully
If you want cheap life insurance, choose a low risk occupation because people in high risk jobs pay significantly more for life insurance. High risk occupations include scaffolder, steeplejack, demolition expert, pilot, diver, soldier, deep-sea fisherperson and oil rigger.
Shop Around Before You Decide
You can shop for cheap life insurance online, over the telephone or in person – just make sure the entity you work with is authorized by the Financial Services Authority. Different companies charge various rates for the same product and it is in your best interest to take the extra time to shop around for the least expensive policy with the largest sum assured.
By shopping around, knowing what products are available and taking care of your health, you can find cheap life insurance to take care of your loved ones if the worst occurs.