Low Cost Life Cover

What are Examples of a Low Cost Life Cover?

There are many kinds of life covers out there, designed for the different needs of people. Some life covers are easy to understand, while some are complex and full of technical jargon. Some are very low-priced, while others are too outrageously expensive. Life covers range from just £5 per month to a staggering £80 for the same mode of payment. Of course there are pros and cons here. But if you’re looking at a rather simple low cost life cover that simply provides protection to your family, this article would be glad to help you out, as this is a guide to how to find cheap life covers. It also includes essential policy options to consider.

Term and joint life assurance

In the UK, the most popular low cost life cover is a term assurance. It’s also the least expensive one, in that for just a few pounds a month, your dependents are guaranteed with a lump sum payout of several thousand pounds if you pass away during the specified term. Now the term has durations of 5, 10, 15, 20 to 40 years, depending on your choice. The payment terms are also flexible in that you can choose from monthly, quarterly, or annually, and payments should be made until the term ends.

Another popular choice among British married couples and business partners is joint life assurance. It’s a whole life or term assurance that protects two or more people under one policy, where there is a payout either at first or last death. Married couples and business partners opt to use this as it is significantly cheaper than taking out two separate life covers.

Policy options

Both aforementioned life covers provide protection through a very basic arrangement. However, there are little variations of these products. For term and a joint term assurance, you can select from a level term, renewable term, convertible term, or decreasing term. All kinds cater to different needs and premiums are also adjusted accordingly.

Riders

Riders are additional benefits that can be attached to a low cost life cover to further strengthen its protection ability. The most popular of these are accidental death and disability rider and waiver of premium rider. Accidental death and disability rider allows the beneficiary of the insured to receive double the face amount of cover if the insured dies or becomes disabled due to an accident, while the waiver of premium rider means that your premiums will be paid for you by the company if you become unable to earn money due to an illness or injury. GP