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Life Insurance

Last updated: 15 March 2015

We’ve all, undoubtedly, thought about how loved ones may cope financially if you died, but few of us have actually done anything to help protect them should this happen.

Life insurance is great if you want to financially help your loved ones should the worse happen and knowing you have provided them with a financial safety net can provide will give you peace of mind.

You can start a policy from as little as £5 a month and it could be worth it if you have dependents that would benefit from such a payout, especially if you have income that they rely on.


Types of life insurance

There are basically two types:

  • Term life insurance – It will normally pay out a set amount lump sum if you die within a fixed term – such as 5, 10, or 25 years. A lump is paid only when you die
  • Whole-of-life policy – this policy will pay out regardless of when you die, as long as you keep up with your premium payments


Prices for women

Prices on life insurance for women went up for women in December 2012 – you can thank the EU courts for the price hike, which ruled that gender could not be taken into account when calculating insurance costs.

So both men and women can now expect to to pay the same price for any kind of insurance.

What you should know

If you are considering taking out life insurance, then it’s worth knowing the following:

  • Ask your insurer what protection there is if their company goes bust
  • Ask for the lump sum payment upon death to be paid into a trust – writing the policy in trust means the lump sum will not form part of your estate and therefore will not be subject to inheritance tax. You can do this easily as many insurance companies will give you that option. Trusts can be difficult to cancel, so be sure of the details
  •  Tell your insurer about all illnesses – past and present
  • The healthier you are, the cheaper it is. Smokers may pay more.


How to get one

You should shop around for life insurance policies, just as you would for your home or car insurance.

You can get quotes from comparison sites, going direct to insurers, brokers or financial advisers.


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Reduce your grocery bill by 70% this summer!

The kids are off school and they are going to be hungry – inevitably, the next few weeks will see the cost of your weekly shop shoot up.

To help families keep the costs of food shopping down, MMM put Approved Food to the test, which can help slash the cost of shopping by as much as 70%.

There is of course one catch – the food is past or close to its sell-by date, but perfectly safe.

With a £30 budget, MMM managed to bag a fair amount – cereals, tinned food, sweets and treats, drinks and even laundry detergent and dishwasher tablets – the sort of things where you can generally ignore the date stamped on the product.

If you’ve tried reducing the cost of the grub by switching brands or shopping at discount stores but think you can do better, then try Approved Food  – you’ll be surprised at just how much you could save on some store cupboard essentials.

New products are available everyday and there are some real bargains. For example, Sprite Zero 330ml for just 29p or a 2kg Reeses Peanut jar for just £2.99. There’s even stuff for pets, at more than 50% off.

MMM was really pleased with service and surprised at just how at just how much £30 would buy (see pic above/ instagram).

Although we would like to see Approved Food cut down on the cardboard packaging, the items arrived well packed and in excellent condition.

So, if you’re looking to save a few more pounds on your groceries, take a look at Approved food – you’ll be surprised at just how good the bargains are.


Keep up with MMM on Twitter @MumMoneyMatters and Facebook !


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