Life insurance can provide you and your family a great deal of peace of mind and protection should you pass away. So if it was available for free, surely there’d be no question about it?
This is in fact what a select few providers are currently offering, generally to parents with young families, and there’s no doubt that it can be of great benefit to you. But how much will these policies actually do? We take a look at the most common features to see how they stack up.
This kind of cover always carries a restriction on the age of your child or children, showing that it’s an incentive clearly aimed at young families. The maximum age your child can be at the beginning of the policy varies between provider from the age of 1 up until 4. Whilst restrictive, the purpose of this is quite clear – young families are likely to have a number of financial burdens, such as a potentially new mortgage, and so free life insurance can be a safety net in this situation.
Terms of policy
The policy provides cover for up to 12 months, usually with £10-15,000 as the payout at death. Interestingly, this figure is per parent, meaning that your family could be protected with up to £30,000. Realistically though, this won’t amount to much in the long term, as most mortgages are likely to be many times this – ONS figures put the UK average house price for first-time buyers at £205,000. Considering the lack of income your household would be receiving with the loss of a primary earner, mortgage repayments would be a struggle, and so a larger life insurance payout would be a much bigger help in this difficult time.
No strings attached
Like many things that sound too good to be true, with this kind of cover, you’d expect there to be a catch. We’ve scoured the fine prints, and truth be told, we’re impressed.
Provided that you’ve not received medical treatment for cancer within the last 12 months or have tested positive for HIV, you’ll be accepted. Online application makes the process easy and convenient for young parents native to the digital realm. And as you’re not asked to provide your bank details, there’s no need to worry about automatic payments after the 12 months are up, either.
However, what they will have is access to a lot of your details, including your address, phone number, email, heck, even your favourite colour. So go forth, but be prepared for a whole lot of advertisements for life insurance coming your way. In the grand scheme of things, a few marketing mailouts won’t be too bad a tradeoff, so provided you’re willing to weather the storm, the free 12-month cover may well be worth the pester.
All in all, these free policies are pretty good and well worth consideration. However, it’s important to remember that they are free, and won’t provide adequate cover in the long run. Think of them more as a free 12-month taster, which may just be a big help should misfortune befall you and your family.
The biggest benefit these policies bring is that, during your free cover, you’ll have time to seriously consider what life would be like if your children were to lose you or your partner. It’s not a happy thought and certainly not a scenario to dwell on, but coping financially, let alone emotionally, will be a real task. In moments like these, life cover will be an invaluable safeguard.