What affects the cost of life insurance?
Summary: Our premiums vary depending on the length, type of policy and amount of cover you need as well as your personal circumstances such as age, health and lifestyle.
What affects the cost of your life insurance?
Our premiums vary depending on the length, type of policy and amount of cover you need as well as your personal circumstances such as age, health and lifestyle.
As an example, a 30-year-old non-smoker could purchase a £200,000 decreasing term policy for 20 years from under £6 a month.
As part of your life insurance application, you’ll choose an amount you’d like to be covered for. If you die, this will be the cash lump sum your loved ones receive.
If you choose decreasing cover, the amount will reduce at a rate of 6% in-line with your mortgage payments. Click here to read more about decreasing cover.
Here are the things that may affect how much your policy may cost:
The length of cover
The length of your cover depends on what you’d like to protect. Everyone is different; some customers will purchase a policy aligned to the length of their mortgage, whereas others will select a policy that provides a pay out until their children can fend for themselves.
The type of policy
The type of policy you choose can affect your life insurance premiums. Level term policies are usually more expensive, as the pay-out stays the same. Whereas with a decreasing policy, the amount of cover decreases over the course of the policy in the same way your debt decreases.
The amount of cover
The amount of cover you need should be based on your unique circumstances and your reasons for getting it. Some people want to protect their house, some people want to leave a deposit for their children. Everyone is different, that’s why at Beagle Street you can tailor your policy to the needs of you and your loved ones.
Your health and lifestyle
Premiums vary depending on your personal circumstances such as age, health and lifestyle. These factors matter as they can influence the possibility of you developing a critical illness that could lead to death, we base our premiums on the likelihood of this.
Got a spare 3 minutes? Click here to get your quick quote to see how much cover would cost for you.