A recent survey commissioned by Legal and General has revealed that Brit’s could be neglecting to protect themselves financially due to over-estimating the cost of life insurance (term assurance).
Legal & General found that people might avoid taking out the amount of life cover they require because they consider it too expensive. The survey showed that 65% of respondents over-estimated the cost of a £150,000 life insurance policy with 35% over-estimating the cost of including a critical illness policy with the term assurance plan.
According to L&G, £150,000 of level term assurance over 25 years for a healthy, non-smoking man aged 25 would cost approximately £8 per month. Of those surveyed, 24% expected it to cost between £11 and £20, 18% thought that it would cost £21 – £30 and 22% thought over £30 for the same life policy.
Life cover can be used to protect your loved ones financially should the worst happen, the life assurance plan would pay out a tax-free lump sum which could be used to cover the financial obligations left behind. With two-thirds of respondents overestimating the cost of protecting their loved ones with a life insurance policy it is important to make clear the true cost of a life policy. Depending upon your situtaion term assurance can start from as little as £6 per month, whether you are looking to cover a mortgage or just give those left behind a helping hand we can help you find an affordable life plan.
If you are looking for a life insurance policy or need some advice on your term assurance Drewberry Personal insurance brokers can help, call us on 0800 612 7897 or email personal@drewberryltd.com
