Short term pain for long term gain

It can be tempting to make life insurance choices based on price. Who wants to pay a bigger premium, especially when you’re young and money is tight? That’s why many tick the option that costs less in the early years but is re-adjusted every year.

However these stepped or ‘rate for age’ policies can become seriously expensive. Many people in their 50s and 60s see their annual life insurance bills climbing year after year. This is the flipside of cheap premiums in their youth.

The alternative is level cover. This sets a flat premium, which may be more costly early on but generally only goes up by the CPI rate. After 30 or 40 years your annual premium will seem like an absolute bargain. It’s like choosing a three-year fix for your mortgage instead of the cheaper six-month rate that could jump several times in subsequent years. You pay more initially but save over the longer term.

There are many life insurance options so get in touch to find the best one for your stage of life. It may not be the policy with the cheapest initial premium!

Have you reviewed your insurance recently?  If not,  make an appointment