personal finance

Life insurance UK: Why a new job could mean you need to pay MORE for your cover


The cost is dependent on a number of other factors, as the Money Advice Service points out.

Not only does the amount of cover a person want affect the price of a premium, but the likelihood of the policyholder dying in the near future does too.

As such, some things which may affect the premium cost can include age, hobbies, and whether one smokes or has previously smokes.

Marital status can also be a factor, as can a person’s current health, their weight, and their family’s medical history.

What’s more, a person’s job can also mean they pay more than others.

The Money Advice Service website states: “Some professions carry a higher risk than others and might mean you have to pay more each month.”

Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “Those who are acutely aware that their job is more dangerous on a daily basis than average can feel reassured that having a riskier role doesn’t necessarily mean you’ll pay more for your life insurance.

“Of course, each quote is entirely unique, with a variety of factors coming into play.

“It’s best to double-check that the details you provide are accurate to ensure a suitable quote and avoid higher premiums.”

It may be that an individual takes out life insurance in order to ensure that their mortgage is covered should they die.

However, this is not necessarily a requirement of every mortgage.

In fact, according to the Mortgage Advice Bureau, it is not a legal requirement that a person takes out life insurance when getting a mortgage.

Rather, it says that the only type of insurance which a mortgage-holder is legally required to have is buildings insurance.

It’s this type of policy which means that should damage to structural aspects of the home occur, then the insurer may cover the cost.

What’s the difference between whole-of-life and level term cover?

These policies are two types of life insurance, with the former, as the name suggests, spanning the whole of the rest of one’s life.

While it may come at a higher cost, this type of cover can mean that the pay out is not affected by when a person dies.

Level term cover is another type of life insurance, and this lasts for a pre-agreed period of time.

The insurer can pay out should the policyholder die within this time, but wouldn’t if the death is after this time period has come to an end.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.