UK Life Insurance News

Thursday, July 07, 2005

 

How to pay less for life insurance without changing insurer

The cost of life insurance could be even cheaper if customers paid their premiums annually rather than monthly according to Standard Life.

The company calculates that over a typical 25 year term, customers could save 18 months worth of premiums, more in some cases. Life insurance premiums already offer excellent value for money but few people may be aware that by paying for their cover once a year rather than every month they could make further savings or purchase more cover for the same cost.

Like many insurers, Standard Life gives customers who choose to pay their premiums annually a discount. For example a male non-smoker aged 35 next birthday would pay £10.02 a month for £100,000 of life cover for 25 years which over the course of a year would cost them £120.24. However if they chose to pay annually the cost would reduce to £113.00 giving a saving of £7.24. Over the full term of the policy this saving would equate to 18 months worth of premiums. A similarly aged non-smoking female would see savings amounting to 20 months premiums.

Mick James, Marketing Manager Protection said, "When you insure your car, house, or holiday you would expect it to cost less to pay annually rather than monthly. Why should life insurance be any different?"

Standard Life believes that if the cost of life insurance starts to rise the option to pay premiums annually could be a useful means to keep the cost within many people's budgets.

posted by UK Insurance Index  @ 12:31 PM

Wednesday, July 06, 2005

 

AXA cuts life protection rates

AXA has cut its guaranteed life or earlier critical illness rates, and guaranteed decreasing term assurance rates.

Life or earlier critical illness rates are being reduced by an average of 2-2.5%, while decreasing term assurance rates see an average reduction of around 5%.

Iain Mallon, Head of Protection at AXA, said: "We are committed to keeping our rates competitive in a fast-moving market, and these reductions are designed to help us continue to do that."

posted by UK Insurance Index  @ 6:24 PM

News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature some of the information in these news stories may no longer be current.