Experts claim that life insurance in the UK is something that many people end up paying more than they need to for it, because they are worried about getting it right.
The Cheapest Life Insurance takes a closer look at this situation and why it may be an issue.
In short, a lot of people end up purchasing the wrong kind of cover. Some do it because they are perhaps ignorant when it comes to life insurance and there is a track record of older people, concerned about inheritance tax plunging into policies that don’t offer the right level of cover.
For example, on an over 50’s plan you could end up paying more for your premiums compared to whole of life insurance. Of course, which you choose is up to you, but in short, you should think about this perhaps before paying for an over-priced policy.
Let us assume that premiums of £20 a month are paid by a 50 year old man who is healthy and a non-smoker. He might buy £6’500 worth of cover from a well-known over-fifties plan. However, if the man were to buy cover from PruProtect, he’d actually get £27’500 of cover for the same monthly premium.
Both types of policies in this case pay ‘death benefits’ when the policy owner dies, however in terms of figures, it’s easy to see which is potentially the better level of cover.
Of course both forms of insurance can guarantee a fixed, tax-free lump sum should the worst happen, but it’s still food for thought.
In actuality, the later death happens, the less promising an over-fifties plan can actually is.
So what’s the best thing to do?
Seek out independent financial advice is always something we’d recommend and second to that, the only other answer is to shop around and make sure you don’t take the first thing you see because the company has been busy putting money into marketing themselves. Celebrities are often used, which it could be argued gives people a false sense of security. However, if cost is a factor for you then you can still get cover with a well-known insurer for less money.
Whatever situation you’re in with your life insurance or if you don’t have any cover and you’d like to find out what’s out there for you, why not contact The Cheapest Life Insurance?