Life Insurance
What is Life Insurance?
Life insurance is an agreement between yourself (the policyholder) and your insurance provider. It ensures the financial protection of your loved ones when you pass away or if you are diagnosed with a specified critical or terminal illness, by paying out a lump sum.
The cost of life insurance cover depends on a variety of factors such as your age, health, and lifestyle.
Why should I take out a life insurance policy?
Life insurance is one of the most important investments you can make if you intend on providing financial security to your loved ones should the unexpected happen. It can cover your dependents, such as your partner, children, or anyone else who may rely on you financially, by helping them towards paying off repayment mortgage debts, student loans, funeral costs, and any other expenses.
Nobody wants to plan for what should happen following their death, especially when it comes to financial organisation, but considering the benefits of life insurance, this is something that anyone and everyone with dependents should do.
Buying life insurance ensures that loved ones feel at ease with the knowledge that in the event of your death, they would be financially secure during an already tough time.
How does Life Insurance work?
There are a number of different life insurance policies to choose from, the most popular being term life insurance. This pays out a pre-agreed amount of money to your loved ones (or whoever you decide) if you pass away during the specified cover period.
You choose the amount of the final payout and the length of the term at the start when taking the policy out. People often choose this plan to run alongside a repayment mortgage or have cover in place until their children have reached a certain age and have chosen to move out. Once the date of the policy expires, then the cover will no longer be in place, as it should, in effect, no longer be required.
Here at 2MinuteQuote, we know that buying life insurance online can be complex; there is also the risk of not buying the right type of policy that sufficiently covers all your financial needs when you're gone.
With this in mind, we decided to offer a one-to-one service and have an expert team of highly qualified life insurance advisors on hand to go through all of your requirements step-by-step and decide which plan is right for you and your family's future. With this information, they can then find you the cheapest and best deal available in the UK.
Our process promises to give you a clear understanding of the appropriate amount of cover you will need when it comes to protecting your loved ones once you’ve passed. Not only will we try to find the cheapest option, but the most suitable plan for you.
What’s the average cost of Life Insurance?
Life insurance policies can start from as little as £5 per month depending on your requirements and your situation. The price can vary depending on a number of factors, including your age, health, occupation, whether or not you smoke, and if you have chosen the length of the term and whether you wish to add on critical illness cover at an additional cost when you take out life insurance.
On average, smokers usually pay 15-20% higher premiums than non-smokers with corresponding demographics and health conditions. Smokers also cannot qualify for the best life insurance quotes until a minimum of 12 months have passed since nicotine was last in their system; this includes e-cigarettes, nicotine patches, and any other nicotine products.
One type of term life insurance policy, which allows you to decide on the time frame and how much cover you need, is decreasing term insurance, which usually works out cheaper. This plan is ideal for those who feel they will need less cover as time goes on. A decreasing term policy pay-out tends to reduce over the years, usually in parallel with a repayment mortgage, for example.
Why it's worth taking Life Insurance out earlier?
Generally, the younger you are when you take out a life insurance policy, the cheaper it’ll be.
For example, an active 20-year-old who is also a non-smoker has a much smaller risk of dying during the period of the policy in comparison to an 85-year-old smoker who has a progressive lung condition.
Whether you are single, without a mortgage or any dependents, or you are a married couple with children and a new home, choosing to take out life cover at the youngest possible age is the best decision when planning for your family’s financial future.