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Budget life insurance review 2021

Founded in the UK in 1992, Budget Insurance Services is an insurance broker under the BGL Group. The company has helped over 3 million clients to date, offering motor, home, and life insurance products.

The company acts as an intermediary on behalf of Scottish Friendly Assurance Society Limited for its life insurance policies.

Types of Life Insurance Offered by Budget

Budget life insurance

Budget offers two types of life insurance policies

Budget offers two types of life insurance policies:

  • Level Term: Where your payout has a fixed value through the duration of your insurance policy. This option is excellent if you have an interest-only mortgage, if you’d like to leave a large sum of money to a loved one, or if you have debt.
  • Decreasing Term: With this option, your coverage decreases throughout the insurance period. Typically, your premium also drops. This policy is good if you have mortgage payments and would like a life insurance policy that will match as you pay it off.

You also have the option of adding:

  • Critical Illness Cover: This option can be added to your primary policy, and it covers you if you’re diagnosed with a condition covered by the company.

Features and Benefits of Budget Life Insurance

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Like any insurance provider, Budget has various features and benefits that set it apart. Some of the more important ones include:

  • Life insurance coverage of up to £750,000
  • Paperless documents, stored in an online account that can be accessed 24/7
  • Companion service: Get aid from a registered nurse if you’re diagnosed with a critical illness whilst covered by a policy.
  • Accidental Death Benefit: Get automatic approval for the company’s complimentary accidental death benefit service whilst your application is processed. If you die before your application is approved, this service will pay up to £100,000. This is a fantastic alternative that can save you money instead of getting costly short-term life insurance.
  • Free will service provided by the company.
  • Free legal advice for your loved ones on any end of life issues.
  • Budget doesn’t request a medical examination but asks various health-related questions during the application process.

Overview of Budget Life Insurance Key Policy Details

Cover Options Decreasing Term. Level Term.
Cover Period Between 5 to 40 Years.
Critical Illness Cover Available for an extra fee.
Maximum Applicant Age 64.
Minimum Entry Age 18.
Whole of Life Policy Not available.
Joint Life Policy Both policy options are available as single or joint life

Budget Policy Exclusions

We compare plans from the leading life insurance providers

It’s worth discussing with a Budget advisor what’s excluded from the life insurance coverage. However, the main points are:

  • Terminal illness isn’t applicable in the final 12 months of the policy.
  • The policy will not pay out if you commit suicide in the first 12 months of the policy.

Remember to always check the details of any insurance policy you opt for, as you don’t want any surprises if something were to happen.

Budget Life Insurance Ratings

A great way to compare life insurance policies is to check ratings awarded by independent rating companies specialising in financial and insurance firms.

The research and rating company Fairer Finance ranked Budget 5th out of 25 companies reviewed for Life Insurance. The ratings included a:

  • 94.28% claims score
  • 85% complaints performance
  • 60.63% transparency score
  • 80% customer experience rating

UK-based financial information and rating company Defaqto awarded Budget a 3 Star Rating for its life insurance and a 3 Star Rating for its life insurance with critical illness cover policy.

Does Budget Offer Life Insurance For Over 50s?

The company doesn’t offer a specific life insurance product for over 50s, but anyone under 64 can apply for policies.

Can You Write Your Budget Life Insurance Policy in Trust?

Budget provides a fantastic trust tool that allows you to write your life insurance policy in trust. These come in various types but essentially enable you to select a trustee who will make sure your beneficiaries receive the correct payout, should you pass away during the coverage period.

What Changes Can You Make To a Budget Insurance Policy?

You can get in touch with Budget’s team to make any change to your policy free of charge. You can change the coverage amount and length and reduce the policy from joint life to two separate policies or a single policy.

How Much Does Budget Life Insurance Cost?

Your life insurance premium with Budget will depend on various factors. The firm considers your age, whether it’s a single or joint life policy, your medical history, smoking status, health condition, and occupation. For a general understanding, here is an example:

  • A non-smoking 30-year old applicant looking for a level term policy covering £150,000 over 25 years should expect to pay around £6 per month. To add £37,500 worth of critical illness cover, the price would rise to £15.87 per month.
  • The same applicant looking for a decreasing term policy would be paying around £5 per month, rising to £14.46 with critical illness cover.

The premium will increase if you’re older, a smoker, or if you’re employed in a hazardous job.

Is Budget Life Insurance Right For You?

Budget Insurance Services offers a range of benefits and perks that make it a fantastic option if you’re looking for a provider with an excellent online platform. Its paperless system and 24/7 online access account will appeal to you if you prefer a more modern approach to handle your insurance.

The company is also good if you’d like to use the supplementary services, such as the free will service and the ability to write your life insurance in trust. This will save you time, and the company will likely give you a reasonable price on the latter.

If you need life insurance to cover a high cost, such as a large mortgage, the max coverage of £750,000 might fall short. However, for most people, that won’t be an issue since the average mortgage of first-time buyers in the UK stood at £198,777 in 2020.