A London insurance broker has warned that many are using the credit crunch as an excuse to cut out life insurance.
According to recent research, nearly 50 percent of the current population don't have life cover.
Although many in that 50 percent are too young to get insured, there are many people who really should be insured and it seems that the credit crunch is another barrier stopping people affording life cover.
The potentially disastrous results of not being able to provide for your loved ones once you have gone are almost twice as worse during a recession, meaning that it is more important than ever to get life cover rather than being scared of the costs.
Peter Curtis, a well respected insurance broker seems to have a solution which could help benefit those who are eligible for life insurance but are worried that they cannot afford it when most are tightening the purse strings.
Peter Curtis of the London based insurance broker IDFM says:"Assuming that the mortgage has been fully covered, a capital sum would be paid by the insurer and it would then be up to the survivor to clear the loan in full or in part.
The problem is that, even without a mortgage, there will be substantial costs in bringing up a family.
Given the choice, it is likely that the survivor would want to ensure that their need to work did not affect their children's future and that they could manage the two things without the pressure of juggling the household finances.
" The ideal solution is Family Income Benefit, this is a basic and cheap form of life cover which will provide the family with an annual payment rather than one cash lump sum.
The idea behind this is that it should replace the dead persons annual salary and would this usually continue until the deceased person's children or dependent's are considered to be independent.
Peter Curtis from City insurance broker IDFM says: "If a policy was taken out for say, 20,000 pounds a year benefit for 18 years and one of the policyholders died in year 4, the survivor could expect to receive the selected annual benefit until the end of the policy term.
As the liability to the insurer decreases as the years go by, this type of insurance can be extremely affordable.
For example, a 30 year old non smoking couple affecting a policy for 18 years, paying a benefit of 20,000 pounds per year on death would cost around 14.
91 pounds/mth per month.
When you consider that this policy would ease the financial burden of the survivor it is little cost when compared with an average household budget.
" A small payment of around 14.
91 pounds a month is a small price to pay to ensure financial stability for loved ones.
A Family Income Benefit policy could be the best way to take out a life insurance policy during the credit crunch, so if you want to secure your family's future but are worried about the extra cost then a Family Income Benefit policy could be the way to go.
According to recent research, nearly 50 percent of the current population don't have life cover.
Although many in that 50 percent are too young to get insured, there are many people who really should be insured and it seems that the credit crunch is another barrier stopping people affording life cover.
The potentially disastrous results of not being able to provide for your loved ones once you have gone are almost twice as worse during a recession, meaning that it is more important than ever to get life cover rather than being scared of the costs.
Peter Curtis, a well respected insurance broker seems to have a solution which could help benefit those who are eligible for life insurance but are worried that they cannot afford it when most are tightening the purse strings.
Peter Curtis of the London based insurance broker IDFM says:"Assuming that the mortgage has been fully covered, a capital sum would be paid by the insurer and it would then be up to the survivor to clear the loan in full or in part.
The problem is that, even without a mortgage, there will be substantial costs in bringing up a family.
Given the choice, it is likely that the survivor would want to ensure that their need to work did not affect their children's future and that they could manage the two things without the pressure of juggling the household finances.
" The ideal solution is Family Income Benefit, this is a basic and cheap form of life cover which will provide the family with an annual payment rather than one cash lump sum.
The idea behind this is that it should replace the dead persons annual salary and would this usually continue until the deceased person's children or dependent's are considered to be independent.
Peter Curtis from City insurance broker IDFM says: "If a policy was taken out for say, 20,000 pounds a year benefit for 18 years and one of the policyholders died in year 4, the survivor could expect to receive the selected annual benefit until the end of the policy term.
As the liability to the insurer decreases as the years go by, this type of insurance can be extremely affordable.
For example, a 30 year old non smoking couple affecting a policy for 18 years, paying a benefit of 20,000 pounds per year on death would cost around 14.
91 pounds/mth per month.
When you consider that this policy would ease the financial burden of the survivor it is little cost when compared with an average household budget.
" A small payment of around 14.
91 pounds a month is a small price to pay to ensure financial stability for loved ones.
A Family Income Benefit policy could be the best way to take out a life insurance policy during the credit crunch, so if you want to secure your family's future but are worried about the extra cost then a Family Income Benefit policy could be the way to go.
