Is cheap life insurance better?
Looking for affordable or budget life insurance? Life insurance doesn’t always have to cost a lot. Even a modest amount of cover could provide financial support for your loved ones if you die during the policy term.
You can get Life Insurance with L&G from £5 a month, depending on your needs and circumstances.
But the cheapest life insurance isn’t necessarily the best option for you. It’s important to consider the amount of cover you need, as well as what you can afford. In this guide, we look at what could affect the cost of life insurance, how to find affordable cover and what to consider when comparing your options.
You might also like...
How to get cheap life insurance quotes
As with many things in life, getting the cheapest life insurance doesn’t necessarily mean you’re getting the best. In order to get low cost life insurance that still reflects your requirements, you’ll need to make an honest assessment about how much money you would like to leave your loved ones. Here are some ways that could help you to calculate the cover you require:
- What is your annual salary multiplied by the number of years you wish to cover your loved ones?
- If you have a mortgage, how much is still outstanding? Or if you rent, what are your monthly repayments and how long would you likely live in your current home?
- How much would you need to pay off any debts?
If you want some assistance, try our life insurance calculator – it’s a simple way of deciding how much cover you need before you get a life insurance quote. Remember that the cheapest life insurance quote isn’t necessarily the best, you’ll want to make sure you have sufficient cover should the worst happen.
There are various factors that can affect whether you can access life insurance and how much you’ll pay, regardless of your budget. The cost of life insurance is based on the likelihood of you making a claim while covered by the policy.
What can affect the cost of life insurance?
Once you know how much cover you need, the cost can depend on several factors, including:
- your age
- smoker status
- Body Mass Index (BMI)
- occupation
- hobbies
For example, you’ll be classified as a smoker if you’ve recently used nicotine or nicotine replacements in the last 12 months, which means you’ll face higher premiums.
Finding life insurance that fits your budget
Whatever your personal circumstances, you can shop around for the best deals. Reviewing your bank statements can also help you get an accurate picture of your living costs and what you can afford.
If you’d prefer, you can speak to us to discuss any queries you may have.
Yes, if you have a partner, a joint life insurance policy is usually cheaper than getting two single policies. However, a joint life insurance policy normally only pays out once – upon the death of the first policy holder – so it may be worthwhile to take out two single policies despite the extra cost.
Life insurance when renting
Contrary to what many people assume, life insurance is not just for homeowners, but renters on a budget too. Life insurance is designed to cover your life as an individual – or couple – rather than a property, so if you rent and other people depend on you financially, life insurance is worth considering.
Evaluate your circumstances
Remember that life insurance is ultimately designed to protect those who rely on your income. So life insurance could be cheaper for those who have fewer financial dependents, such as children, a partner, or parents with care needs, as a lower amount of cover might be needed when there are less people to protect. This is only one factor to consider when evaluating your circumstances and overall protection requirements.
And of course, life insurance on a budget doesn’t necessarily always offer the right cover for you. There are a range of life insurance products out there and finding the one that matches your needs and circumstances can be just as important as the cost. Look out for product features that appeal to you, and the reputation of the insurance provider; for example, L&G Life Insurance has a 5-star Defaqto rating.
Getting life insurance with L&G
Regardless of your budget, getting a life insurance quote could be easier than you think. Our cover starts from just £5 a month, depending on your needs and circumstances. To find out how much life insurance you might need, use our Life Insurance Calculator and then get a quote in under two minutes, with an instant online decision if you decide to apply.
Life insurance doesn't have a cash value unless a valid claim is made.
Want to learn more about Life Insurance?
