The latest news from CredAbility;
CredAbility, the credit score and comparison app, today announced the launch of a low-cost life insurance product to protect those least likely to have cover: lower-income households, families living in rental properties, and self-employed people.
The new term life insurance product, Affordable Life, provides lump sums of up to £100,000 to the partners and families of policy holders that die or are diagnosed as having fewer than 12 months to live while the policy is active. Affordable Life is available now to CredAbility’s three million members through its free credit score and comparison app.
Affordable Life cover starts from just 60p per month, which CredAbility believes to be the lowest entry point for life insurance in the UK, and can be obtained online in less than five minutes with just three health questions and no medical examination.
CredAbility estimates that the typical price for a 35-year-old non-smoker seeking £25,000 of level cover over 20 years will be just £3.93 per month. Premium prices will be fixed at the point of application and not increase for the duration of the policy.
Nik Charalampous, CredAbility CEO, comments: “This isn’t life insurance for wealthy people that want big payouts. This is low-cost life cover for people who need a simple and affordable way to protect their loved ones.”
“Life insurance offers a financial lifeline for families when they need it the most, but lots of people see it as a luxury. The cost-of-living crisis has priced many on lower or unpredictable incomes out of the market, leaving millions of partners and families vulnerable to joint debts, rising household bills and housing costs.”
12m UK adults living with children or partners do not have life cover
CredAbility analysis of Financial Conduct Authority data shows that 5 million parents in the UK now have no life insurance to protect their families if they died, while 7 million people living together without dependents lack life cover to support their partners.
Renters, self-employed and lower-income households are least likely to have cover:
- Life insurance adoption is only 22% for adults living in households with incomes of less than £50,000 a year, half that of those earning over £50,000 (44%)
- Just one-in-seven (15%) adults living in rented accommodation hold life insurance
- Self-employed people (32%) are less likely to have life cover than employees (38%)
The proportion of adults with life insurance cover has declined since 2020:
- The proportion of UK adults with life insurance has fallen between 2020 and 2024 (from 30% to 28%), with the largest declines in Wales (-6% points), the West Midlands (-6%pt) and North East England (-5%pt)
- Coverage rates have dropped most among households with incomes between £30,000 and £50,000 (-6%pts) and the self-employed (-5%pts)
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