Does life insurance feel expensive or good value? After all, unlike a house or car, you're buying peace of mind rather than something you can physically touch. Our own cover can start from just £5 per month, but we know it can be frustrating to get a quote and see the premiums coming out higher. So how are life insurance premiums worked out? Let's explain.
What puts life insurance premiums up?
Put simply, as long as you pay regular premiums to a life insurance company then the policy should guarantee to pay out a sum of money if you die within the term of the policy. But in essence, the bigger ‘risk’ you are, the higher the premium is likely to be. Those risk ‘factors’ include these things:
- Current health and weight
- Medical history
- Smoker status
- Family’s health
- Recreational activities
So for example, if you have high blood pressure, diabetes or are overweight then your premium is likely to be higher. Hereditary health conditions, such as heart disease or cancer, can also put the price up. And if you’re doing what may be thought of as a more dangerous job, such as a fire-fighter, stuntman or pilot, then you’ll probably pay more than someone who works in an office.
Do I have any control over this?
Well, there are a few things that you can influence. Insurers also look at your daily routine – so if you're not drinking, not smoking, you manage your weight and exercise regularly, then your premiums may not be as high.
Much depends on which type of policy you choose too, as some policies may have premiums which could change over time.
As you can imagine, everyone is different. That's why it's important to get a quote, which can help give you an idea of what you might pay for cover.
Does it take long to find out?
No. You can get a quick quote in 2 minutes, and we’re confident that you can give us enough information in about 15 minutes for us to create a more detailed quote that uses your unique details. And if we can’t (if there’s something we’d need to know more about, like a particular illness or an unusual job), then we let you know straight away.
You wouldn’t buy car insurance without spending ten minutes shopping around to get the best deal, so we hope you’d want to spend just a few minutes more looking into what’s right for you when it comes to insuring your life.
So is life insurance really that important?
Let’s think about it this way. You probably use your income at the moment to help with running the home and looking after the family. So what would happen if you’re ill, or you die, and you can’t provide that income? Where would the money come from then?
Different types of life insurance can give your family different types of cover, and it's up to you to decide which best suits your needs.
For some, life cover could help provide the reassurance that your loved ones could receive financial support in the event of your death, helping them to continue to live the lifestyle that they currently enjoy.
Or for adults with an outstanding mortgage or debt, a sufficient life insurance plan could help to settle any financial imbalance and could help protect your loved ones from the cost of any repayments.
What about Aviva’s life insurance policies
Because everyone's needs are different, we offer more than one type of life insurance.
- Our Life Insurance Plan with decreasing cover provides a level of cover which decreases over time, broadly in line with an outstanding loan, such as a repayment mortgage. Premiums are calculated when you take out the policy and remain the same over the length of the policy.
- Our Life Insurance Plan with increasing cover provides a level of cover which will increase annually, in line with the Consumer Prices Index (CPI). Your premiums will increase to reflect this. (The maximum amount your cover can increase by is 10% and your premiums could increase by a maximum of 15%) If you choose not to accept the increase, or if the CPI doesn't increase at all, your cover and premiums will stay the same.
Our life insurance policies will pay out a lump sum if you die during the plan term.
- We also offer critical illness cover, which can help provide support for you and your loved ones should you be diagnosed with a critical illness.
Our critical illness policies will pay out a lump sum if you are diagnosed with a critical illness that meets our policy definition during the term of the plan, and survive for at least 10 days. We only cover the critical illnesses we define in our policy and no others.
Our protection policies have no cash-in value at any time.
There's a lot to think about but hopefully we've helped you to understand a bit more about our policies, how your premiums are calculated and why life insurance is so important.
If you're looking to find out more about life insurance from Aviva, you can compare our products to see which ones might best suit your needs; or you can take a look at our handy life insurance calculator which can help you to decide how much cover you might need.
To get a more tailored quote, why not take advantage of our life insurance quote page now, and see how much value for money you’d get from our policies?