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Parents are being urged to consider taking out term insurance as a cheaper way to safeguard their families' future in the event of their own death.
People on a tight budget who are unable to afford high life insurance premiums, are finding that term insurance is a less expensive option for them, whilst still providing the financial security they desire.
The big difference between the two policies is that term insurance pays out only if the holder dies within a selected period of time. Stuart Budgen of Libra Financial Planning explains, “For somebody who is 30 and a non-smoker, who wants £100,000 cover for 15 years, it will probably work out to about £6 a month.”
He goes on to say, “If you were talking about whole of life, you are probably looking at a couple of hundred pounds a month.”
Figures released by ‘Insure Me' show that more people in the US hold term insurance as opposed to life, with this trend likely to follow in Britain .
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