Life insurance offers guaranteed financial security for your family when you’re no longer around to provide it, yet far too many people don’t consider taking out a policy amid fears that it is overpriced and outside of their budget.
The truth is that life insurance costs a lot less than what most people typically think, and many of these are almost certainly spending more money on far less important goods and services compared to the amount they’d have to fork out for good life cover.
Less than a third of UK residents currently have a life insurance policy in place, putting millions of families at risk of financial turmoil in the event of an unexpected death.
With that in mind, here are 10 things that people buy, use or subscribe to without batting an eyelid; all of which can cost more than an average life insurance policy*.
How much is life insurance?
Research by price comparison website Confused.com has suggested that a comprehensive life insurance policy can be bought for as little as £4.58/month. However, prices can vary depending on individual circumstances.
This example is based on a UK level-term life insurance policy for a 30-year-old non-smoker with no existing medical conditions, lasting for a 20-year period.
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Don’t worry, we aren’t suggesting that you cancel your Netflix subscription – we’d never do such a thing!
What we are suggesting, though, is that you re-consider whether or not life insurance is ‘too expensive’ when it costs LESS than a monthly subscription to Netflix. The cheapest Netflix subscription costs £5.99/month, around £1.40 more than an average life insurance policy.
And while it’s true that life cover won’t give you access to hours-upon-hours of blockbuster entertainment, it will provide your loved ones with years of security following your death, which should, of course, be more important than any entertainment subscription.
#2) Lottery tickets
Since lottery tickets doubled in price from £1 to £2 in 2013, a weekly entry to the prize-draw will now set you back £8 a month.
Of course, with that comes the miniscule chance of becoming a multi-millionaire, but there is absolutely no guarantee that you’ll ever win even a measly £10. In 2018, it was reported that each ticket had a 1 in 45,057,474 chance of winning the National Lottery.
Life insurance, on the other hand, guarantees your family a lump sum of money if you die subject to the policy’s terms; and while it may not make them millionaires, it’ll certainly be a windfall that they’ll appreciate during a difficult time.
In the event of your death, your loved ones can no longer rely on the money that comes from your income, so a life insurance payout could be used to cover the mortgage or to pay for general expenses, depending on the type of policy.
READ MORE: Level Term vs Decreasing Term Life Insurance
#3) Gym memberships
It has been estimated that a whopping 67% of gym memberships are held by people who don’t actually go to the gym.
When you consider that monthly membership costs can range anywhere from £10 to £40, that’s a whole lot of money that could be much better spent elsewhere – for a fraction of the monthly price, you could get one of the best life insurance policies around!
Besides, you don’t need to tie yourself into a 12-month gym membership to get some exercise. Working out at home or taking a jog around the block are great ways of keeping fit without spending a fortune.
It is also worth noting that some life insurance providers even offer discounts on gym memberships to promote a healthy lifestyle.
#4) Snack deliveries
Companies like ‘Graze’ offer boxes of snacks on a weekly subscription model, but we’ve found these to be seriously overpriced for what you get.
With 4 small pots of assorted nuts, dried fruits and other treats coming in at £4.49, your money would be much better spent elsewhere (while this is a few pennies less than our cheapest life insurance policy, it is a good example of how your money could be better spent).
Companies like Graze make thousands of pounds from customers who forget to cancel their free trials, so be sure to cancel it once you’ve claimed your freebie.
Not only is smoking one of the most unhealthy habits you can have, it is also one of the more expensive.
The average cost of a pack of 20 cigarettes was reported to be £10.80 in 2019, meaning that somebody who gets through a pack every day could save more than £330 every month by kicking the unhealthy habit.
Giving up smoking can not only work wonders for your lungs, but you’re bank account too! Life insurance for smokers is much more expensive, often increasing the monthly premium by more than 50%.
Many Brits can’t function without a cup of coffee in the morning, but when that cup of coffee is purchased from a café and not made at home, the costs can soon rack up.
A medium latte (or iced latte) at Costa comes in at £2.45 – that’s more than £17 if you have one every day for a week.
When you could get £100,000 worth of cover for around £4.58 a month, it really puts into perspective just how cheap life insurance is!
#7) Packaged bank accounts
Not only do some people not make full use of these services, some don’t even realise that they’re paying for them, wasting upwards of £10 every single month.
Packaged bank accounts can be of great value if you plan to make use of the offered incentives, but this isn’t always the case.
#8) Cinema popcorn
A regular popcorn in Odeon cinemas costs £4.90, which in itself is already more expensive than an average life insurance policy. Throw in the cost of a drink, perhaps a hot dog and, of course, the cinema tickets, and a trip to the cinema has just cost you at least £20!
You can get cinema ticket discounts through schemes like Compare The Market’s ‘Meerkat Movies’, but this doesn’t take away from the ludicrous cost of cinema snacks.
Would you trade your family’s financial stability for a sweet (or salty) snack?
#9) Next-day delivery
A one-off payment for next-day delivery can cost more than a monthly life insurance payment, so try to plan in advance when shopping online.
If you regularly need next-day delivery then consider an annual membership, with popular retailers like BooHoo and ASOS offering unlimited next-day delivery for as little as £10/month.
If you can wait it out for the 2-3 day standard delivery, you can save the extra money and put it towards taking out £100,000 worth of life cover.
Be it in a casino or on a sports betting app, gambling is almost guaranteed to leave you out of pocket.
Gambling is a dangerous habit and, if you need help kicking it, you can speak to advisors and others who have shared similar experiences here.
Not only will you feel much better for quitting, you’ll be able to put a percentage of your savings towards a guaranteed life insurance payout for your family.
Get life insurance with Bobatoo
Bobatoo works with the UK’s most reliable life insurance providers to ensure that customers get the very best cover at the very best price.
Click below to see how you can get a cheaper life insurance quote to provide financial protection for your family.
*Subject to your circumstances. The cost of life insurance is based on many factors, so the price will depend on your individual situation (health status, age, etc).