Affordable life insurance
What is affordable life insurance?
Affordable life insurance provides customers in the UK with an insurance policy that will pay out a lump sum payment to the family of a customer who loses their life, and is priced in such a way that everyone can afford it. There are two main different types of affordable life insurance, with one type offering customers cover for their whole life, and the other offering cover during the term of greatest financial responsibility.
Many customers will ask why they need affordable life insurance, and the simple answer is that without it, you will leave your family facing financial ruin.
Ask yourself what would happen to your family’s finances if you were to die tomorrow and no longer be able to provide for the family. Even if you do not work, consider what your time is worth in child care costs. For many people, the answer is that the cost of running the household would increase, because full time working would require additional child care, and the income would drop, because there would be one less earner, leaving many families unable to afford their mortgage, and struggling to make ends meet.
In the past, many families have ended up losing their home, after having it repossessed after falling further and further into arrears on their mortgage.
Whole affordable life insurance
Whole affordable life insurance provides customers with a life insurance policy for their whole life, and is far more expensive than term life insurance, because it effectively guarantees every customer a payout at some point. The insurance company will therefore need to charge every customer at least their payout in premiums over the period of the insurance policy, to make any profit at all.
Term affordable life insurance
Term affordable life insurance is the more affordable of the two different types of policy, and provides a customer with life insurance when they need it the most. Term life insurance normally runs alongside a mortgage, and is rarely offered to a customer beyond their 60th birthday. This means the majority of customers outlive their policy and never get to make a life insurance claim, reducing the cost of the insurance for everyone. Affordable life insurance provides customers with peace of mind that should the worst happen, at least the customer’s family will be financially secure.