UK Life Insurance Cover
Big changes in the UK life insurance market.
Rates for term cover have been steadily dropping fro five years as competition heats up; whereas for whole of life consumers the benefits of UK life insurance cover have been shifted largely into unitised policies with a heavy dependence on the stockmarket. Caveat emptor!
In the UK life insurance cover options have increased dramatically in the past few years- and that’s beneficial to you, because rates have dropped by up to 50% in that time.
The changes have been seen in two ways. Term assurance rates are massively down; due to hugely increased competition in the marketplace. Supermarkets like Tesco and Sainsbury’s offer UK life insurance cover now, and that’s pushed down the cost to consumers. There’s the good news.
If, instead of term assurance, you want a whole of life policy, then you need to think a bit harder. Old-style endowment products and other investment vehicles are falling by the wayside- not so much because unitised products are in some way better, but because the stockmarket has taken a tumble in the past few years. That tumble means life offices don’t want the responsibility of trying to turn old-style products into value. Instead, whole-of-life policies are tightly tied into the value of the marketplace, and if stocks go down, so do your bonuses! Furthermore, as mutual societies seem to be disappearing in the UK life insurance cover is likely to come only from companies with shareholders, which adds another burden to your hard pressed cash.
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