Insurance |
|
Your Money > Insurance Articles > Life Insurance Is...
|
|
By Jane Baker
In my last article on life insurance: Eight Reasons Why You Need Life Insurance, I highlighted the importance of taking out protection as key events take place in your life. Trouble is, a growing number of people are getting married, buying first homes and starting families later in life. In fact, recent research from the Office for National Statistics (ONS) reveals pregnancies in women aged 40 and over have risen by almost 50% over the past decade. That means the need for life insurance could surface a lot later than you might expect. But will you still be able to buy a value-for-money policy when you're no spring chicken!? So why is life cover more expensive for older people? The simple answer is because a claim is more likely to be made under the policy if you're older. The majority of people in their twenties have enjoyed a clean bill of health. If you took a 25-year life policy out at the age of 25, there's a high probability you will survive until the end of the policy at the age of 50. But, if you're already 50 and you took out a 25-year policy, the chances of you surviving to 75, while still good, are undoubtedly lower. For this reason, life cover premiums for older people will be higher than for someone in their twenties or thirties. How much does life insurance cost for older people? Buying cover later in life won't necessarily be beyond your means. If you thought taking out life insurance in your forties, fifties and beyond would be outrageously expensive, think again. Take a look at the cheapest premiums available through The Motley Fool Life Insurance Service. These policies provide £100,000 as a cash lump sum if the policyholder dies within the 25-year term.
Premiums shown are based on a healthy, non-smoker, level term assurance on guaranteed premiums. As you can see, the premiums for a 40-year old woman could cost as little as £10.11 per month, while a 40-year old man could pay just £12.49. This shouldn't cause too much of a dent in your finances. Of course, the costs rise for people aged 50. Women aged 50 might pay £24.81 per month for their life cover, while men would pay a little more at £33.08. But be warned: these figures are based on standard quoted premiums. The actual cost you might pay for your life insurance policy will depend -- not only on your age -- but also on a wide range of other factors including your medical history and current health. For this reason, the premium an insurer asks you to pay for your policy could be higher. Once your application has been assessed by an insurer, if the probability of a claim being made under your policy is no greater than average, you should enjoy reasonably-priced life insurance. And the cost of cover is coming down as average life expectancy improves. According to figures from the ONS, women aged 40 this year will live to 83.1 years on average while, men aged 50 will live to reach 80.5 years. Because people are living longer, the cost of life insurance is falling. So -- as long as you have a clean bill of health -- getting a policy that lasts well into your sixties or seventies should be fairly easy on the pocket. More: Save £2,238 On Your Life Insurance | Why You Don't Always Need Life Cover | Compare life insurance quotes at The Motley Fool Insurance Centre The comments above are the opinions of the author only and do not represent advice specific to your circumstances. This article has been approved and issued by Direct Life & Pension Ltd who are authorised and regulated by the Financial Services Authority. The Motley Fool Insurance Service and The Motley Fool Life Insurance is a trading style of The Motley Fool Limited. The Motley Fool Life Insurance is provided and administered by Direct Life & Pension Services Limited. The Motley Fool Limited is an introducer appointed representative of Direct Life & Pension Services Limited, who are authorised and regulated by the Financial Services Authority. Registered office: Pinnacle House, A1 Barnet Way, Borehamwood, Hertfordshire WD6 2XX. Useful links:
Copyright © 2008 Fool.co.uk - Insurance Team. All rights reserved. |
| ||||||||||||||||||