Life insurance, is it worth it? Insurance itself is a tricky thing to justify if you are one if the thousands of people who never have a car accident, you never need hospital treatment on holiday and you still haven’t been burgled or had to deal with the aftermath of burst pipes. Insurance is a safety net; if something were to go wrong, would you be able to pay to have a new car, to be airlifted off the ski slopes or replace the entire contents of the ground floor of your home? Chances are, the answer to all of the above is no. So, this is why we many of us take out insurance.
But in reality, it is often a waste of money. How many holidays have you been on in the past five years? Probably at least one a year and for each one you have paid say £50 for travel insurance. That’s £250 you could have used for another holiday.
But – now this is the real issue – if you hadn’t paid £50 and you then need to be picked up by helicopter and transported to hospital where you had to have x-rays, your leg put in a cast and you were kept in over night just for good measure, you are looking at a bill of way over £5,000. So, £50 seems like a good investment.
The trick is to manage this risk through insurance, but at a price that you are comfortable with. There are still wallet-friendly life insurance policies out there, if you don’t believe us check out award-winners Legal and General cheap life insurance. You need to find a life insurance policy that is right for you and your needs.
There are several different life insurance policies to choose from these days offering a decent degree of flexibility. For younger, healthier people looking to start a family, one of the best options is mortgage life insurance. This kind of policy will pay out if you die or are diagnosed with a terminal illness during the term of your policy. There are two types of mortgage life insurance: term and decreasing cover. As the name suggests, decreasing cover is reduced over time in line with your mortgage. Term cover remains the same throughout the policy. If you really want the cheapest life insurance cover on the market, decreasing mortgage policies are generally your best bet.