Life Insurance Costs

Life Insurance policies are of great help in an untoward incidence like in the death of the insured. In United Kingdom any person in the age group of 18 and 66 can avail life insurance policies and the premium will be paid through direct debit and the policies do not have value for cash-in. There are many questions that pop up in your mind while searching for the right kind of policy for self. The first and foremost thing that comes to your mind is how much will be the cost of taking up a life insurance policy.

The cost of taking up a life insurance coverage starts from euro 5 a month and depends on your financial condition or how much premium you can afford to pay at each month. The amount of premium that you may have to pay when you buy a life insurance policy is decided by many factors like age, illness, any other medical history and if you are addicted to smoking or drinking. The type of life insurance coverage that you planning to take, also decide the premium amount. If you want to calculate the premium amount that you may have to pay for the term you are planning to take the insurance, multiply the monthly premium with 12 and then for the term you have taken the policy for. Example:

Monthly premium – Euro 5

Term – 25 years

Premium amount = Euro 5 x 12×25 = Euro 1500.

There are many websites which helps you know about the various prices offered by various companies. You can also compare the various quotations by different companies at one place. Most of the life insurance companies provide quotes for free which helps you in taking the right policy and within the range of your budget. The premium you pay also depends on the type of cover you planning to take up. There are mostly two choices for cover, level and decreasing cover. For level cover the premium amount remains the same and the lump sum amount which is payable also remains constant. However, in decreasing cover, the lump sum amount that will be paid decreases with the term of the policy. Thus, the amount of money paid in the first year of the policy will be greater than that paid in the final year. The cost of the life insurance will also depend on the fact that it is taken for single person or for the family.