Life Cover – What can you buy with a tenner?
The cost of living always seems to always be on the rise and more and more people are struggling just to make ends meet. With the prices of everyday items seeming to go up and up, it’s fair to say that £10 doesn’t go very far any more. Let’s look at what it could buy you:
• Less than 7.5 litres of unleaded petrol (average price per litre on 7 November 2011 was £1.34.81)
• 25 days’ TV Licence (the annual fee for a TV Licence is currently £145.502)
• The Kindle edition of the latest Stephen King novel3
What a regular £10 payment can buy most people, however, is a great deal of financial peace of mind through life cover.
Life cover is a valuable form of insurance which pays a cash lump sum on death or the diagnosis of a terminal illness (that is an incurable illness that is expected to cause death within 12 months). You can buy life cover for one person or a couple jointly. The lump sum can be a level amount that remains the same throughout the term of the policy or it can decrease each year (a cheaper alternative that is most commonly chosen to cover the outstanding balance on a repayment mortgage).
When someone dies, those left behind have so many legal, funeral and other arrangements to cope with on top of their grief. Many will also have to face the added burden of sorting out their finances. Bills will still need to be paid, everyday and emergency costs will still need to be funded and ‘treats’ could become a thing of the past. The loss of a breadwinner can be a huge financial blow to their family, especially if they die at a relatively young age.
Life cover can help their family avoid these additional financial worries. Take a look at these examples of how much life cover can be bought for £10 a month:
Person(s) covered Type of cover Monthly cost Amount of life cover
Male age 30 non-smoker Level for 25 years £10 £106,736
Female age 35 smoker Level for 15 years £10 £82,290
Male and female both age 40 and non-smokers Decreasing for 20 years £10 Initially £59,431
All figures are taken from johnlewis insurance. The figures are for illustration only and were correct on 24 November 2011. The actual cost for an individual is based on a number of factors including their age, gender, health, occupation and whether or not they smoke.
You can find lots of useful information about life cover online. Many websites also allow people to apply for their life cover online. And some providers offer a service where you can apply over the phone.
[1] – Daily Telegraph 7 November 2011 – Motorists warned cost of tank of petrol ‘to hit £100′ by 2015
[2] – TV Licensing – TV Licence types and costs
[3] – 11.22.63 at Amazon (£9.99 on 24 November 2011)
Company Profile:
John Lewis Insurance offers a range of insurance services selected by the John Lewis Partnership. These include car, home, pet, travel, wedding, event and life insurance products.
For more information – visit John Lewis Life Insurance website.
Filed under: Health Care