I fear many people avoid approaching an Advisor as they are unsure as to the cost of Life Insurance. The truth is there are many variables and factors that affect this.
There are a couple of different types of Life Insurance that affect the cost, these are:
- Decreasing Term Assurance – recommended to protect a mortgage or other loans. This is the cheapest form of Life Insurance whereby the premiums remain the same throughout (on Guaranteed Premiums) but the cover decreases at a set rate which is chosen when taken out.
- Level Term Assurance – recommended to a specific term length, for example to retirement or even to age 90. Also recommended for an interest only mortgage. This type costs more than the above.
- Family Income Benefit – recommended if you would like a monthly income rather than one lump sum. This is particularly attractive for those with young children where funds can be paid into a trust.
- Whole of Life Insurance – Guaranteed to pay out no matter the age and because of this does come with a higher premium.
- Over 50’s Life Insurance – Guaranteed acceptance so no medical underwriting to be completed. Aslong as premiums are paid it pays out no matter what age you die.
How much cover do you need?
The amount of cover you want to have will affect the premiums. I firstly look at protecting the mortgage and then speak to my clients about other priorities taking their budget into consideration.
As you have probably guessed, it is very difficult to tell you exactly how much Life Insurance will cost based on the above considerations but there are also other factors:
- Your age
- Your health
- Whether you smoke or not
- Your lifestyle
- Family History
The younger and healthier you are the lower the premiums will be. I meet with clients on a regular basis and unfortunately many are either declined cover or are required to pay a higher premium due to their health.
Follow us on Facebook where I will be providing examples of cover amounts and their costs.
Talk to me and receive a personalised quote for you and your family. If you have any questions relating to any medical conditions I can advise on this and carry out any research prior to providing quotes.