How much does life insurance cost? - Protection Insurance Specialists
Chester, Cheshire
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How much does life insurance cost?

How much does life insurance cost?


Life insurance can protect your mortgage, cover funeral costs and leave a lump sum to any loved ones when you pass away. There are many misconceptions when it comes to getting life cover, of course not everyone is guaranteed to be accepted, but it’s not as expensive as people think. Find out here what contributes to the cost and see some real quotes.

What affects Life Insurance?

Life insurance assesses how much of a risk you are. The more likely you are to pass away, the risk is greater to the insurer as they will have to pay out.

There are 7 main factors that an insurer assesses you for life cover. These are: age, gender, smoker/non-smoker, lifestyle, medical history, driving record and health.

The younger and healthier you are the cheaper insurance is going to be. If you smoke or have any medical issues you will see a price increase. However, there are options to search for a policy depending on your realistic monthly budget. A specialist can also search by how much of a payout you would like to see how much it will cost monthly. Speak to a specialist and get a quote today.

Let’s see some quotes

A 20 year old male, non-smoker, over a 50 year term can be quoted for a level term policy of £516,927 for £20 per month. A level term policy will only cover you if you die within that term. Once the term ends you aren’t covered and either need to renew or search for a new policy.

Likewise, the same customer can also pick up a Vitality wellness optimiser plan for the same price and term but with a higher payout of £824,276. This is because some plans, like Vitality have the option to engage with the plan.

Lets jump another 20 years, a 40 year old male, smoker can get a 35 year level term policy with Vitality for £30 a month with a benefit amount of £129,698. AIG quotes for the same price and term with a payout of £118,074.

The other main type of life insurance is Whole of Life cover – a guaranteed payout upon your death whenever that may be. This is why these plans are more expensive, as the insurer is guaranteed to payout.

A 40 year old female, non-smoker can get a Zurich whole of life policy with a payout of £41,657 for £35 a month.

I’m older, what are my options?

In comparison, a 60 year old, female smoker would get a whole of life policy for £40.07 a month with a £15,000 payout.

If you’re over 50 it is worthwhile enquiring about an over 50’s plan. With these there are no medical or lifestyle questions and you are guaranteed to be accepted. However, these tend to have a much lower payout amount.

As you can see, the quotes vary depending on age, gender, and smoking status. But quotes are not fixed until you complete a health and lifestyle questionnaire. This is where any medical history and lifestyle choices are assessed. If you have any extreme hobbies or a medical condition it could change the price offered.

You can speak to a life insurance specialist that searches the whole of the market so you don’t have to. They can search all the insurers, different types of policy, premiums or benefit amounts until they find you something suitable.

The above post does not constitute advice – financial, legal or otherwise. The information within this article is the author’s own opinion and do not necessarily reflect the views of SO Media or So Smart Money.


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