Life Insurance Too Expensive

Life insurance is too expensive according to a survey commissioned by the Personal Finance Society (PFS) (financial advisers) in co-operation with the annual Protection Review Report.  

Advisers believed the price of life insurance was the reason that the number of people buying protection is so low.  

Term Assurance, Critical Illness and Income Protection are thought to be the “big products” for this year according to advisers, whilst Long Term Care and Payment Protection Insurance and Life insurance are less of a priority.

Our view

Life insurance premiums reflect the amount and risk of claims received.  You cannot just ‘magic’ the premiums cheaper meaning that life insurance companies makes losses.  We expect the cost of life insurance to remain consistent and the costs of critical illness insurance to rise.

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