Cost of living - what can we do to help?
By now, we’ve all heard of the cost of living crisis and most of us will be feeling the effects of it too. But do you know what this cost of living crisis means for your life insurance policy?
What does it mean for your life insurance policy?
This crisis is a result of several factors but it is largely down to the rising cost of energy prices, food and other general things we need to get by.
But don’t worry, the price of your life insurance isn’t going up! When you take out a life insurance policy, your health is evaluated and once this is done, you will be told there and then what you will pay for your policy every month.
If you keep your cover the same throughout the duration of your term, don’t cancel your cover and make sure you don’t miss any payments, then your policy will remain the same price. If you have an index-linked policy then your cover will increase annually to keep your pay-out inline with goods and services in the UK but you can remove this at any time (more about this later).
Please don’t wait
Starting is always the hardest part when it comes to most things but putting off sorting your life insurance policy could leave you paying way over the odds in the future and here’s why.
Life insurance becomes more expensive the older you get, so the longer you wait to sort your cover, the more you could be paying. The reason for this is largely down to health, as you're statistically more likely to suffer with illness and have a higher chance of passing away as you get older.
As a result, your life insurance premiums tend to be a lot cheaper when you are younger and the premium you secure when you take out your cover will stay the same throughout the duration of your policy.
The 41 year high inflation - how does it affect your cover?
The annual rate of inflation reached a 41-year high in October 2022 which means prices of goods and services in the UK have risen considerably. You’re probably wondering what this means for your life insurance policy…
If your cover is index-linked, then this means that your cover will increase inline with the price of goods and services in the UK. Having an index-linked policy means that the value of your cover will retain its value in the future. This cost of living crisis is a perfect example of how the price of goods and services can change.
Inflation will always ebb and flow but prices do tend to go up little and often and before you know it you’re paying 30p for a Freddo (anyone remember when they used to be 10p?), so if you want the value of the cover to retain its value, keeping your cover index-linked (if it is within your affordability) is the recommended option.
Feeling the pinch?
The cost of living crisis (I'm sure you’re sick of hearing about it by now) is affecting pretty much everyone in the UK. But if you’re struggling to keep up with payments for your cover, don’t suffer in silence - we can help.
At Busy Bee, our customers are our top priority so if you need help, we’ve got you. Our customer care team can look at your current cover and see if we can modify it to suit your current situation. Whether this is editing the amount you are covered for or shortening the length of cover or removing indexation from your policy, we are here for a reason.
Get the most out of your cover
Free stuff is always better, right? Whether it’s food, drink or anything else - it always seems to be better when it’s free.
Saying that, people seem to forget about the free benefits that can come with your life insurance policy. Most of the UK’s leading life insurance providers, AKA the big names like AIG, Royal London, Aviva and Scottish Widows now offer freebies when you take out a policy with them.
We aren’t talking about coupons or discounts but benefits that can make a real difference to your life. Benefits can range from 24/7 access to online GP’s, tailored health and wellness plans, mental health support and so much more.
You can rely on us
Once you have set up your cover with us, we aren’t going anywhere. If we have helped you set up your life insurance policy - we aren’t going anywhere.
Our customer care service extends all the way to the claim stage (if you or your loved ones were to make a claim). We can help amend your cover, talk you through your trust forms, and review your policy in the future. If you are yet to start your life insurance journey with us, then click the button below to begin today!
*These benefits are not guaranteed and may be changed or removed at any time by your insurance provider - please check your policy terms & conditions for full details.