High Street commissions and the limited range of life insurance policies available through tied advisers mean that life cover is ‘almost always’ cheaper through an independent financial adviser, industry experts stated this week. The news comes as Nationwide confirmed it adds a 20% commission to life insurance policies it sells. Read More
Life insurance specialist Compass has launched ‘Unusual Risk’, a policy offering life insurance cover for those with medical conditions, those working in hazardous jobs, or those who play extreme sports.
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Most of us spend more each month on the lotto than on insuring our life and the wellbeing of our family. Only 41% of people in the UK have life insurance cover, while 68% of people play the lotto or gamble, says Aviva. The average household spends nearly £14 a month on games of chance, while the cheapest life insurance cover can cost just £5 a month.
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Childcare costs for 2 children are now almost £16,000 per year. As a result, many families would struggle if one income were to be lost. The working spouse would find themselves working ‘just to pay the childminder’, but would depend on dwindling state benefits, if no life and critical illness insurance were in place.
Family income benefit insurance or FIB is a lesser-known life insurance policy that pays a yearly income, rather than a lump sum, to your family. FIB is ideal for funding education for your children, or the costs of childcare. It’s also a lot cheaper than traditional ‘lump sum’ life cover. Read more by clicking the headline above.
While the woman is increasingly the main breadwinner in the UK household, she fails to realise that this has created a need for her to take life and critical illness insurance, according to AXA.
Critical illness insurance cover is an area where understanding the terms and exclusions of the policy is essential. The importance of knowing the exclusions in all types of insurance is highlighted again this week, as thousands of stranded holidaymakers find their travel insurance is invalid, because the eruption of the Icelandic volcano is considered an ‘Act of God’.
Single income families are on the rise, and the number of stay at home dads has increased tenfold to 600,000 in 10 years. Personal insurance, including life cover and critical illness cover, are all the more important to protect a family from losing its only income, with no second income to fall back on.
For financial planning purposes, the cost of raising a child to 21 should be factored in as £194,000. Life insurance cover should be calculated accordingly, says Zurich Assurance.
