Affordable Life Insurance: Is a Term Policy Right For You?

We all want to protect the ones we love. Unfortunately, our budget can sometimes limit our ability to put adequate financial safeguards in place… or so you might think.


If you believe that life insurance is out of reach financially, you might be surprised to hear that this doesn’t have to be the case. The truth is, there are lots of affordable, flexible life insurance options available to you. We’re here to tell you that you may not have to make sacrifices to protect you and your family.


Understanding affordable life insurance options


If you want to find suitable cover on a budget, you need something that matches your family’s needs and circumstances. You need to get to know what’s on offer in order to find the right policy.


Understanding how these policies work is key to finding the right cover that won’t leave you out of pocket. We offer two types of cover under our Family Life policy Level Term and Age-Based. With a little planning, either one could be suitable for someone on a tight budget.


What is Term Life Insurance?


A term life insurance policy is often a go-to for people on a budget since you don’t have to commit to a lifelong contract. Here’s how it works...


It covers you for a certain term or amount of time i.e. 10 years, 20 years, 30 years. Your protection expires when that term is up, and you are no longer covered after this point. If you outlive the policy term, you get nothing back.


Another benefit of a term policy is that it’s a fixed or level term meaning the rate will remain the same. You will always know what to expect to pay each month and you can avoid increasing premiums. That way you can easily work the payments into your monthly budget.


Why Is Term Life Insurance worth considering?


This type of policy could be ideal for those who want to protect their loved ones for a set period of time. For example, if you have a joint mortgage, you can help your spouse cover the costs should you die. That way they may not lose the house if you can no longer contribute to monthly payments. People with children often choose a term policy that lasts until the children are old enough to take care of themselves.


Here’s an example: Kate’s youngest child is 15. She decides to take out A 10-year fixed term policy until the child has turned 25. At this stage, the child is no longer financially dependent on Kate. Should anything happen to Kate after this term, there could be less of a financial impact on the child.


Control and flexibility


When it comes to our policies, you have full control over what you pay. You choose a benefit amount or a monthly premium rate that suits you. You don’t have to take on any more than you can afford. If your financial situation changes down the line you might need an increased or decreased level of cover. In this case, you can apply to make a change to your benefit amount. You see, here at Smart Insurance, we take pride in offering families flexibility to meet your financial needs.


Are there other affordable life insurance options?


If you’re unsure if a term policy is the right choice for you, there are other options. Say you want life-long cover, not to worry, there are affordable whole-of-life choices too. For instance, our Age-Based policy which gradually increases each year with your age. This could make it ideal if you are:


  1. currently tied up in other financial commitments and can’t afford to spend a lot on life insurance.
  2. if you believe you will be able to afford higher premiums a few years down the line and want to secure a sufficient benefit amount.


Concerns about underinsurance


If you’re worried that affordable life insurance options will result in underinsurance, find out how to get adequate life insurance that works for you or check out our guide to calculating life insurance. That way you can get the right amount of coverage for a price that’s suitable for your budget.


Ready to get the ball rolling?


If you’re ready to take the next step then go ahead and apply online for your free quote or get in touch with a member of our team for free on 0800 977 6057. Our award-winning UK based call centre is open from Monday to Friday from 9:00 am to 8:00 pm and Saturday from 9:00 am to 5 pm.