At age 30, it is possible to arrange life insurance that will pay out a lump sum to beneficiaries.
These funds can be used for a variety of purposes and are most often used to provide financial support for a spouse or family when the policy holder passes away.
Many individuals purchase life insurance to ensure that their loved ones will not face financial difficulties while they are also dealing with the loss of a family member. Luckily, life insurance for those over 30 or even 40 is not as expensive as many people believe.
The True Cost of Life Insurance
While many people believe life insurance is associated with high monthly premium payments, the truth is that the price of these policies has been steadily dropping over the last decade. A 30-year-old applicant, who is in good health and a non-smoker, can often secure a great life insurance policy for less than £10 a month.
In fact, the minimum premium payment is usually £5 for policies that can range from £5,000 and £10,000. This makes purchasing life insurance at the age of 30 easy to manage on the average budget.
Life insurance policies are sold in a variety of different types that also have a range of different terms, or number of years that the applicant will be covered.
Life insurance policies are available in terms anywhere from 12 months to policies that last the holder’s entire life. Policies that cover the applicant for his or her entire life are called Whole of Life policies – this type of coverage will continue to fully cover the individual and his or her family for however long he or she is alive and making premium payments.
What Factors Can Increase Your Monthly Premiums
While premiums for healthy individuals are low, there are a number of factors that can increase this payment. For example, being a smoker can nearly double the average premium payment – this sharp increase is due to insurance companies seeing smokers as more of a risk for developing life threatening conditions, making it more likely they will have to pay out on the applicant’s policy earlier than anticipated. Although this may seem like a bleak outlook for those who smoke, there is a solution.
Every insurance company is different – even though the types of policies they offer may be similar, the cost of purchasing them may be starkly different. Because of this, it is important to research different offerings and look into competitive quotes.
There are a number of tools available to help individuals find the best life insurance policy for them, including the comparison services offered by Genesage Life Insurance. These tools can help you to find the best possible for a price that fits your budget.
Why “Disclosure” is Important
Disclosure is an important part of purchasing a life insurance policy. “Disclosure” is simply the technical term for the lifestyle and medical questions that life insurance companies ask. While some of your answers to these questions could increase your payments, they should always be answered accurately and honestly.
The answers to these questions will help to form the core contract between the policy holder and the insurance company and will be referenced should beneficiaries need to make a claim.
Legally, the proposal form an applicant completes acts as an “offer” to the insurance company for coverage. The insurance company’s acceptance of this offer, which is either done in writing or digitally, is the company’s “counter offer,” which states that they will accept covering you, based on your disclosures for the stated monthly premium payment.
If the applicant accepts this offer, the contract between he or she and the insurance company becomes binding when the first payment is made.
By law, this contract can only be binding when both parties have been made aware of all the material facts and they are all true.
Because of this, should you withhold information or give wrong information, the insurance company has no obligation to cover you – should misinformation be found out, it is possible for the insurance company to not pay out benefits when they are needed the most. This is why it is important to be honest when answering these types of questions.
