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SOURCE Drewberry Insurance Ltd
LONDON, October 14, 2013 /PRNewswire/ --
Drewberry Insurance research finds that for a large proportion of workers the total cost of income protection insurance is lower when taken out at a younger age. This means that workers could gain from many additional years of protection and actually pay less for their cover overall.
With most income protection insurers it is possible for the premiums charged to be fixed over the life of the policy. The younger the age that cover is taken out the lower the premium that can be locked-in. Drewberry's research finds that the sum of those lower premiums can often amount to less even though they are being paid for a longer period of time. You can find a full copy of research here.
Tom Conner, Director at Drewberry Insurance says, "This research is remarkable. It's telling us that clients can benefit from a longer period of cover and actually pay less for it overall. This is just another reason why younger workers should be thinking about their protection now rather than leaving it until they are older and a higher risk".
Case study example
A 30 year old non-smoking office based worker looking to take out a policy that would pay out £2,000 per month after 13 weeks of incapacity could expect to pay around £32.40 per month for their cover. This means that if the policy is held to age 65 the total premiums paid would amount to £13,608.
If that same worker took out cover when they were 40 years old the monthly premium would have gone up to £53.18 per month (based on the current rates available) and the total premium would amount to £15,954 if the policy was held to age 65. Thus, in this example the worker would be able to benefit from 10 years of extra cover and actually pay £2,346 less.
Drewberry's research finds that this pattern continues for other age ranges. In fact, the total cost of the policy increases every year from age 25 (total cost of £12,182) up to age 45 (total cost of £16,564). Not only that but this pattern can also apply to other non-office based workers.
Income protection should be explored now
Many individuals wait until they buy a house, get married or have children before considering income protection but this research shows that could be a costly mistake.
In reality, anyone who would suffer financial hardship if their income ceased should be exploring the benefits of income protection, irrespective of age. Younger workers also have the added benefit of being able to lock-in low premiums whilst they are young, fit and healthy.
Notes to editors
Please note that these results do not hold for all ages and occupations. Further details can be found in the full report which can be accessed here.
About Drewberry Insurance
Drewberry Insurance is a trading name of Drewberry Ltd, which operates as a nationwide independent insurance broker in the health and protection insurance markets. Drewberry Insurance offer insurance broking services for a range of individual and group policies, through the following specialised websites:
http://www.drewberrygroupinsurance.co.uk - Informational resource for implementing business health and protection schemes as part of an employee benefits offering.
http://www.drewberrymortgageinsurance.co.uk - Informational resource for arranging mortgage protection insurance, such as mortgage life insurance and mortgage payment protection.
http://www.drewberryhealthinsurance.co.uk - Informational resource for arranging both personal and family private medical insurance (PMI) policies.
http://www.drewberryincomeprotection.co.uk - Informational resource for arranging income protection insurance and payment protection insurance.
Drewberry Limited is an appointed representative of Chase Templeton Limited which is authorised and regulated by the Financial Conduct Authority. Firm reference number 311612. Chase Templeton Limited, Suite 16, Blackburn Enterprise Centre, Furthergate, Blackburn, BB1 3HQ.
For further information please contact:
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