Low Cost Life Insurance

Navigating the maze of providers who have bolstered the term assurance market.

Getting a low cost life insurance deal means shopping around to a lot of places: even supermarkets are selling life policies. But only an independent financial adviser can give you both an honest appraisal of the marketplace, and more importantly tell you what level of cover will adequately protect you.

In general the way to get low cost life insurance is to stop smoking for at least a year, and ensure you get just the right cover for you. Unfortunately, most of us already underinsure our lives, and end up with much less for our dependants than we thought we would.

Low cost life insurance invariably means a product called term assurance. It only covers you for a specific term (usually ten years) and if you don’t die during that time, the policy is rendered worthless. In that respect, it’s just like home insurance- if your home doesn’t fall down, or you don’t get burgled, you don’t get anything back. That’s what insurance means (alas!).

Now, the market for term assurance has exploded in the past five years- because it’s a simple product you can get it without an adviser, over the counter from supermarkets. But beware. In January 2004, the Sun newspaper found that all the supermarkets currently offering so called low cost life insurance were firstly by no means the cheapest in the marketplace, and secondly only sold the insurance products of one provider. What the supermarkets have done, though, is increase competition in this sector- which means you get a better deal! For real low cost life insurance you’re best doing your research online or through an independent financial adviser who won’t restrict your options.