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| UK Life Insurance Company |
New research from the Post Office shows that most adults in the UK value their lives at £350,000. But while this figure represents the average self-assessment, the average life insurance policy will only pay out about half that.
Most people calculate this average by considering the value of their assets, including their home, as well as their salary. Given the fact that a home is usually a person's primary asset, it's no surprise that residents of London, where property prices are highest, place a higher value on themselves than in other areas. Londoners consider themselves worth an average of £500,000, which is much higher than people in the East Midlands, who say they are worth £300,000.
And since most older people generally have to pay more for term-level life insurance coverage than younger members of society, it's no surprise that they rate themselves more highly than other age groups, with an average pensioner of £1. 500,000.
Duncan, Caesar-Gordon, head of protection for the Post Office, commented, “Even though the average British adult values their life at £350,000, which is more than double the average life insurance policy, it is worrying that few people are taking action. To protect. He. Herself' commented Duncan Caesar-Gordon, head of protection at the Post Office.
“While it is very encouraging that people are successfully identifying key stages in their lives when they should consider life insurance, it is about how few people actually take it.
“What's interesting is the calculations people make when calculating what their life is worth. What people need to consider is the amount of money that will help their loved ones pay for something like a mortgage, should the worst happen. ”
Life Insurance Is Cheaper Than 10 Years Ago
A study by Money facts has revealed that the cost of life insurance has nearly halved over the past decade.
Surprisingly, the decline in the cost of term life insurance and its declining rates over this period has occurred despite the increase in the cost of other types of insurance, such as home and auto insurance policies.
The decline in life insurance prices can be attributed to a number of market factors, not least the increased competitiveness of the sector, with a number of new players, such as supermarkets, entering the life insurance sector.
Richard Eagling, editor of investing, life, and retirement with Money facts, comments, “Longer life expectancy coupled with increased competition in the term bail market has pushed prices down to all-time lows, but for non-smokers there are signs that Tariffs may have hit rock bottom.
“Consumers looking to take advantage of the huge savings on offer should be careful because life insurance companies assess risk differently.
“Some policies cost five times as much, so why waste money on unnecessary things.
Study Reveals Life Insurance Shame
An AXA study of customers' willingness to disclose embarrassing personal details when taking out life insurance, as well as other types of policies, has yielded some interesting findings.
According to research, customers are more willing to reveal difficult personal details when talking to an advisor over the phone. Surprisingly, at 1.23%, the non-disclosure rate was even lower than paper and electronic applications, at 5.78% and 3.48%, respectively.
The study is deemed highly relevant to the coverage side of life insurance, with prospective policyholders required to disclose important details about their health and lifestyle.
Mike Taylor, AXA's chief underwriter for protection, comments that talking on the phone is "much less intrusive than being asked for sensitive health and lifestyle information in person."
All figures from within the life insurance industry are expected to follow the news of the study with great interest.
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