Why should I take out life insurance? Life insurance is a vital part of financial planning for anyone who has dependants.
By ‘dependants’, we mean anyone whose circumstances and material wellbeing would be affected by your death – for example, your partner, your children or anyone else who is financially reliant on you.
Thinking about your death and its inevitable impact on your family’s circumstances is difficult – and many people simply shy away from the topic. But not doing anything could put loved ones at financial risk. That’s why it’s important to confront the issue and take out life insurance.
https://pastiin.comHow does life insurance work? In most cases, the most effective form of life insurance is called ‘term’ insurance.
This type of policy pays out an agreed amount – the ‘sum insured’ – either as a lump sum or as a regular income, if you die within a specified period – known as the ‘term’.
You choose the size of the pay-out and the length of the term. For example, you may decide to have cover in place until your children are grown up and have left home.
These decisions aren’t always straightforward, which is why we’re here to help. Our dedicated page on how to work out the amount of life insurance cover you need will help you arrive at a sum insured that reflects your family situation.
What’s the average cost of life insurance and what affects the price? Life insurance policies can start from just £5 a month. New Sport Car
However, the cost will vary depending on factors such as your age, health, occupation, whether you smoke, length of the term and whether you choose add-ons such as critical illness cover.
MoneySuperMarket found that smokers on average pay £18 more a month for life insurance compared to non-smokers*. And adding critical illness cover, which pays out on the diagnosis of one of a list of serious medical conditions, typically increases your payments by almost £28 per month**.
An alternative to straightforward term insurance, where the amount of cover stays the same for a set number of years, is what’s known as ‘decreasing’ term insurance, where the amount of cover reduces over the years (usually in line with a mortgage). This means decreasing term insurance costs less, all other things being equal.
Getting a life insurance quote
Life insurance is hugely important if you have dependants. It’s there to provide money if you die during the term of your policy.You can add your spouse or partner to the policy as well. And it’s also possible to include critical illness cover, so that you’ll receive a pay-out from the policy on diagnosis of a severe ailment or condition.
But most of us have little or no experience of buying life insurance. After all, policies can last for 10, 15 or 20 years or even longer, so it’s not as if we’re going through the process every 12 months as we do with car and home insurance.
That’s why we are constantly striving to improve the way you can get a quotation and buy your policy.
MoneySuperMarket works with a number of the UK’s leading life insurance companies to offer you high quality cover at a competitive price.
When you run a quote with MoneySuperMarket, we’ll ask you a range of questions relating to your health, lifestyle and background.
We ask these questions to see if we can offer you a personalised quote which reflects your individual circumstances. These are shown as ‘guaranteed’ prices that you can access immediately through MoneySuperMarket: the price you see is the price you pay.
You may also see some prices marked as ‘referred’. This means you will need to confirm some details before they can guarantee a price.
Where prices are marked at ‘indicative’, you will need to re-answer the questions on your health and lifestyle when you get to the insurer’s website, and the price may change.
Are there life insurance policies which come with a gift? You can compare a wide range of life insurance policies on our comparison tables. And if you take out life cover through MoneySuperMarket, you will receive a £125 voucher from Argos, M&S or Next.
Your voucher of choice is redeemable within 40 days of your third life insurance payment. T&Cs apply. Customers who have received a promotional voucher previously are not eligible for this promotional offer. You can find out more here.
Get a £125 voucher when you take out Life Cover through MoneySuperMarket. Choose from a range of retailers once you've made your 3rd payment