Life Insurance made easy
Introduction We all recognise the importance of life insurance however that doesn’t make dealing with the ins and outs of it any easier. Getting a free life insurance quote and arranging life insurance cover should be straightforward. You decide how much cover you need, over how many years you need the cover for, you sign on the dotted line and you pay your monthly premiums. However, there can be many factors that make a difference to the time your life insurance cover takes to arrange and the amount you have to pay. Factors such as dangerous sports and hobbies, high risk occupations and your medical history can all affect your premium. Insurance History Insurance began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500 BC in Babylon. Life insurance also dates to ancient Rome where “burial clubs” covered the cost of members’ funeral expenses and helped survivors monetarily. Insurance became far more sophisticated in post-Renaissance Europe, and specialised varieties developed. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. Life Insurance Insurance companies alone determine insurability, and some people, for their own health or lifestyle reasons, are deemed uninsurable. Insurance companies have in recent years developed products to offer to niche markets, most notably targeting the senior market to address needs of an aging population. Life insurance is flexible in terms of the level of cover available and the term, or length of time you would like the policy to cover you or your loved ones. One particular type of Life insurance is also sometimes known as term life insurance, because it covers you for a set term usually up to around 20 years. You can set the term at say the number of years until your children ought to be financially independent for example. Life insurance is also sometimes referred too as life assurance, as it is a policy that pays out a sum of money upon the death of the policy holder or insured person. Life insurance policies are usually available on a single or joint life basis and can include additional cover for critical illnesses such as cancer and will help to ensure that your family’s financial needs are met, even after you’re gone Term Life Insurance Term is generally considered “pure” insurance, where the premium buys protection in the event of death and nothing else. Term life insurance quotes are available in two strands, life insurance and life insurance which is tied to your mortgage. Term life insurance policies do not tend to have cash in values, and provide peace of mind that should something fatal happen to the insured, his or her dependents will benefit by way of a cash payment. Term life insurance is a complex area of insurance and you should consider getting independent financial advice from an Independent Financial Adviser (IFA) who deals in term life insurance quotes. Term life ensures that your spouse or child will be financially secure for debts and provisions in case of unlikely death. Term policies typically provide coverage for one, five, 10, 15, 20 or 30 years, or until a specific age (for example, 65). Life Insurance Premium Premiums are effected by your general health at the start of the policy and smokers, for example, are penalised with higher premiums reflecting their higher risk profile. Premiums usually remain the same throughout the term of the life insurance cover. Term life insurance (referred to as Term Assurance in the UK) provides for life insurance coverage for a specified term of years for a specified premium. Life Insurance premiums are usually much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy. Conclusion You can’t really put a price on a good life insurance policy as it gives you peace of mind that all of your financial needs are met, even after you’re gone. Life Insurance pays a cash lump sum to your loved ones if you die, or become terminally ill easing financial burden. In the UK the average household level of uk life insurance is only £17,000 (Association of British Insurers) far short of any families needs, most have none. Research shows the average cost of raising a family is estimated to be over £200,000, so imagine how far £17,000 life insurance will get you. When looking for life insurance it is important to consider the financial commitments you have now and also for the future. Factors such as: • Children, their future lies in your hands. They depend on you to feed, cloth and protect them. Even as they grow older the expense will change for holidays, lifestyle and education, especially if they progress to college and university as we all hope they will. Life insurance will protect their future • Your spouse or partner, do they look after the family home and/or children? Well imagine the affect of their loss on you and your lifestyle. You may have to leave work temporarily or permanently, or, if they work you may need extra money to replace the income you have been accustom to. Life insurance will protect the life style your family has become accustom too. UK-Life could provide quality uk life insurance cover for as little as *25p a day insuring your life for as much as £100,000 over the next 25 years, providing peace of mind and financial security for you and your family.