The Growing Life Assurance Protection Gap
Friday, November 9, 2007
Life assurance industry experts always bang on about the ‘Protection Gap’. This is the difference between the levels of life assurance cover that we have taken out against the amount of cover that the industry believes we need. However, if the latest figure that has been produced by the UK life insurance experts is correct then, as a country we are massively underinsured as the gap stands at a whopping £2.5 trillion, and is growing every year.
We are mainly very good at ensuring that we have the mortgage covered by life insurance should the very worst happen, but it appears that we have totally forgotten all the other costs such as other debts, supporting children and even the mundane, such as living expenses. Of course, those with no dependants have no need of life assurance, but those who do should consider it very carefully.
Unlike most things today, the price of life insurance premiums has actually fallen. In fact, if you compare life insurance premiums to costs ten years ago, they are actually 50% cheaper, meaning that if price was a barrier for most people a few years ago then that situation has changed.
At this point, you may be jumping up and down saying that you are actually ten years older than you were and therefore even though premiums have dropped, because of your age it will still be more expensive. That is a common misconception. Because people are now living longer they pose less of a risk to life assurance companies, and that has helped drive premiums down. Plus, there is more competition meaning that those pressures also force down prices.
Re-visiting the level of your life assurance may also allow you to investigate additional benefit options such as critical life illness cover. Prices will also vary depending upon whether you opt for level term or decreasing term assurance. Level term, as its name suggests offers the same benefits in the case of death over a fixed period, whereas decreasing term reduces the benefits over the period, usually in tandem with your mortgage. As that is repaid, then the amount you would require in cover also reduces.
Recent research produced by the Daily Telegraph highlighted that almost one in three adults in the UK were found to have no life assurance at all. Even though statistically the vast majority thankfully will not require it, if the worst should happen then think of the financial impact on those left behind. Are you happy to live with your own Life Assurance Protection Gap?
Article Source: ArticlesBase.com
Labels: Insurance, Life Insurance
10 Important Things to Remember When Buying Life Insurance
Tuesday, June 26, 2007
It is always better to find out vital information about life insurance prior to buying cover. This ensures that you obtain the best cover your money can buy.
10 facts about life insurance are:
1. Research the market: It is nearly always preferable to investigate all the cover available and to be clear about the monthly fees before deciding. A great place to source this info is online
2. The sooner the better: Do not procrastinate in buying a life insurance policy. The best time to purchase a policy is when you are young and in employment. This will give you a choice of great policies.
3. Do not get too much: Try to have just the correct amount of insurance that is within your budget. Getting too much cover will attract increased costs which is unnecessary.
4. Always tell the truth: Never try to misguide when completing the insurance application. If you are discovered hiding facts, such as smoking, the insurance provider may terminate your plan.
5. Stay healthy for lower costs: Health conscious individuals pay the least expensive fees. But, habits like cigarette smoking, too much alcohol, intake of drugs and obesity can make your premium sky high.
6. Never pay unnecessary fees: The fees of some insurance coverage are high due to the fact they also incorporate the commissions of the broker. To prevent this, go with an insurance company that offers policies sold direct.
7. Monthly fees can cost more: One way to keep costs down is to avoid monthly costs. You should therefore go for bi-annual or annual premiums, which are discounted.
8. Check your cover from time to time: You should
check your cover when there is a major change in your circumstances, like the birth of a child or your children starting university. Occasional reviews help you to ensure that you are paying the right fees, and that you have the right level of cover.
9. Do not rely upon your employers insurance cover: Most employees are provided with company insurance by their employers. But this may be insufficient for your requirements. Additionally, the group insurance policies get cancelled when you depart the company and because of this can not be relied upon.
10. Higher cover could be cheaper: With life insurance, monthly fees get less expensive as you go for increased cover. As such there is nothing wrong in increasing the cover, if your budget will allow it.
Don't leave it to chance. Get financial protection for your family with life insurance from Protected .Source: ArticlesBase.com
About the Author:
Luke Ashworth is the founder of Protected.co.uk which helps you search for life insurance via the website http://www.protected.co.uk.
Labels: Insurance, Life Insurance
