3 Things We’ve Learned About Life Insurance In 2012
Each and every year, the insurance industry changes. New research is carried out which suggests A, B or C. Consumer surveys discover that we’re not doing X, Y or Z. Whatever it is, our views of certain insurances change almost annually because of a range of different reasons and similarly, the insurances themselves continually develop.
In 2012, there’s been quite a large number of changes. Although the most notable is arguably the fact that from 21st December, insurers will no longer be able to base premiums on the gender of the applicant (women were very often given cheaper premiums on a range of different insurances), the following three are some of the most prominent related purely to life insurance (and aside from simply being interesting, showcase just why it’s beneficial to speak to a life insurance advisor when you’re taking out a policy – simply put, you won’t have to keep an eye on such news items, as they’ll be doing it for you!).
1. The cost of life insurance has dropped
In 2010, the cost of a life insurance policy fell. With some considering it simply a blip in proceedings, Sainsbury’s Life found that the same thing happened in 2011, but also that the gap between the cheapest and most expensive policies continued to widen.
With a smoker and non-smoker policy being a prime example – the latter is likely to cost over 40% less than the former now – it’s a clear indication that there’s a necessity to take life insurance advice from an experienced professional, so to ensure you get the most affordable policy possible for your requirements.
2. Millions of full time employed women don’t have life insurance
A study by Scottish Provident found that whilst a staggering 84% of employed women don’t have a life insurance policy with critical illness cover, millions don’t have any type of policy at all.
Whilst this may not have been particularly surprising a few decades ago, the research also stated that more women than ever are making the financial decisions in the household, suggesting they are often the main bread winners. This in turn suggests there is a greater family reliance upon the woman’s income, making it imperative that a life insurance policy is taken out.
3. Increasing funeral costs have made life insurance more of a necessity for many
One of the ways a life insurance policy can be beneficial is to cover the cost of your funeral. Whilst some people don’t take out a life insurance policy and believe their family will be able to cover the costs of the funeral as they won’t be significant, Sun Life found that funeral costs have increased by an alarming 71% since 2004 and 6.2% since 2011.
With a basic funeral now costing £3,284, you really do have to question whether your family has that amount of money readily available to pay for your funeral. Plus, that’s without taking into account any outstanding debts you may have that require settling.
As important as life insurance is, there’s little doubt it can be difficult trying to keep on top of all the news and changes – and it’s for this exact reason why so many people take the advice of a life insurance advisor when looking to get the best life insurance policy possible for them.