A Guide To Life Insurance - Quotation Of Rates Incusive? ....

 

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Quotation Of Rates Incusive?...

The annual premium rate is calculated on the basis that the company receives the annual premium in advance, i.e. at the beginning of each policy year. Payment of premiums at monthly or quarterly intervals means a loss of interest to the office (because it is receiving the money later) and extra expense.

Quarterly or monthly premium rates are therefore slightly higher than annual rates; with most companies, monthly payment involves an extra cost of 3-5%.

Regardless of the size of the policy and the amount of the premium, most companies now make a fixed annual charge on each policy, known as a policy fee.

This may range from £23 to as high as £2112 per annum on some policies. The policy fee is to cover the unavoidable office and administration costs, which do not vary much whatever type of policy is involved. In the examples quoted throughout this website, the policy fee is always included in the quoted rates.


An Online Guide To Life Insurance - New sections added ....

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Pure Protective Life Insurance
The fundamental point about pure (or protective) life insurance has already been made.
It is designed to protect, not to enrich, and works on the same basis as fire or motor insurance: unless a claim is made no benefit can be paid. (see http://www.protective.com/financial-professionals/by-product/life-insurance.aspx)
There are a variety of policies suitable for different needs and situations.
In setting premium rates for short-term protection........ see: read next:for Short-term Protection, Is It A Good Idea


Disclaimer

Our insurance website is an independent marketing website which acts as an introducer to 'whole of market' companies who offer specialist Independent Financial Advice. Each company is authorised and regulated by the Financial Services Authority.

 

We are not authorised to give advice and we are not liable for any financial advice provided by, or obtained through a third party. The information published on this website is for information purposes only. This site has been approved for compliance purposes by a Firm of Independent Financial Advisors who are authorised and regulated by the Financial Services Authority (FSA). The Chartered Insurance Institute

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