Budget life insurance 2024

This insurance company's name includes 'Budget', so you might expect their policies to be cost-effective and straightforward.

Budget Insurance are a financial company offering a range of insurance policies, including: car, van, home and life insurance.

Budget Insurance has received an 'Excellent' rating with a score of 4.3 on Trustpilot, establishing themselves as a highly regarded independent intermediary by both customers and experts.

But do their customer ratings reflect the quality of their policies?

Find out by reading this comprehensive guide by Reassured where we cover:

Whilst Reassured don’t offer policies from Budget Insurance, we can compare term life insurance quotes, as well as a variety of life cover options from a panel of top leading insurers.

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Budget Insurance review key points:

  • Budget Insurance offer level and decreasing term life insurance (these can be a single or joint policy)
  • They’re regulated by the Financial Conduct Authority (FCA)
  • Budget Insurance have a 4.3/5 star rating on Trustpilot
  • Life cover through Budget Insurance is underwritten and provided by Scottish Friendly
  • Terminal illness cover included with a Budget life insurance policy
  • Term life insurance can last up to 40 years (or until you’re 79 years old) helping you cover larger finances for a set period
  • A quick application process that is streamlined for convenience
  • You can add critical illness cover to your policy for an additional cost, which also covers your children
  • There are many benefits included with a policy, including services such as free will writing, cashback & legal advice

Who are Budget Insurance?

Budget Insurance is a reputable insurance intermediary with over 25 years of experience in the industry.

They’re known for simplifying insurance, whether that’s for cars, vans, homes or life insurance.

With the original trading name of BISL Limited, Budget Insurance has made a positively reputable name for themselves with highly scored reviews from both customers and experts.

Budget life insurance is arranged and administered by themselves, but the actual insurance services are provided by Scottish Friendly Assurance Society Limited.

Budget life insurance reviews

Budget Insurance are overall as a business rated highly. Being rated as ‘Excellent’ on Trustpilot and receiving a ‘silver ribbon’ award from expert rating site, Fairer Finance, for their life insurance alone.

By reading customer and expert reviews, you can get an honest insight into how a company really is.

Reviews can play a crucial role in making decisions, whether it's about assessing a customer's experience with an insurer when filing a claim or comparing the services of different insurers by experts.

They provide valuable insights that can help in making informed choices.

Customer reviews:

ProductRatingAnalysis
Trustpilot All products offered4.3
(14,472 reviews)		Their services are highly rated by customers, with a score of 4.3 out of 5 stars and an 'Excellent' rating on Trustpilot, showcasing the best possible feedback they can receive.
Reviews.io All products offered4.0
(1,558 reviews)		Budget policies come highly recommended by 76% of reviewers, signalling a positive outlook on how customers really find their products.

(Correct as of 8/07/24)

Expert reviews:

ProductRatingAnalysis
Fairer Finance Life insurance79.62%Fairer Finance have broken down their score by:
- Claims score: 93.76%
- Complaints performance: 84.92%
- Transparency rating: 61.54%
Defaqto Life insurance3 stars
5 stars		Policies are rated 3 and 5 stars by Defaqto. Depending on the type of cover you choose, the rating may vary. Overall Budget Insurance is rated average to highly.

(Correct as of 8/07/24)

Reassured are rated ‘excellent’ with over 75,000 customer reviews on Trustpilot.

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Budget life insurance policy options

Budget Insurance’s aim is to look and feel easy; therefore, they only offer two types of policies, both term life insurance options.

Like most other insurers, term life insurance through Budget Insurance has a maximum term length of 40 (based on your age) or until your age is 79 and a minimum of 5 years.

Level term life insurance - A type of policy that offers fixed cover for a specified period (the sum assured remains the same). The most popular type of life insurance as it can help cover larger expenses for your loved ones.

Decreasing term life insurance - A type of policy that offers cover for a specified period but the sum assured decreases throughout the policy lifetime.

This is typically the cheapest form of cover and suitable for a repayment mortgage.

Budget Insurance offers up to £750,000 of cover on their policies. The amount you can secure will depend on your needs and personal circumstances.

Reassured can compare term life insurance quotes, as well as a variety of other life cover options to help safeguard you’re loved ones’ future.

Source our best quotes from top UK insurers by filling in our simple online form.

Life Insurance Calculator

Calculate how much life insurance you may need by filling in the costs you’d like your policy to cover.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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How much is Budget life insurance?

The cost of your life insurance policy will be determined by your personal circumstances and the policy you choose.

Monthly life insurance premiums are calculated based on your:

  • Age
  • BMI
  • Medical history
  • Health & wellbeing
  • Smoking status
  • Lifestyle (occupation, hobbies)
  • Length of cover
  • Sum assured
  • Policy option

Level term life insurance premiums tend to cost more than decreasing term because the sum assured remains at a fixed rate throughout the entire policy.

Whereas with a decreasing term policy, the sum assured decreases throughout the policy term, reducing the risk to the insurer and resulting in cheaper premiums.

The table below shows example quotes taken from Budget Insurance:

AgeLevel termDecreasing term
20£4.16£3.35
25£4.28£4.01
30£4.68£4.95
35£5.99£5.45
40£8.31£6.69
45£12.57£8.81
50£19.91£13.10

Quotes are based on a non-smoker, in good health taking out a level or decreasing life insurance policy with Budget Insurance (20 year term) with £100,000 of cover.

Reassured can offer affordable life insurance from just 20p-a-day † .

Joint Budget life insurance

Budget Insurance offers the option to have a single or joint policy with their term life insurance and critical illness cover.

A joint life insurance policy provides coverage for two individuals and will provide a lump sum payout in the event of either person's passing during the policy term (for the first death with Budget Insurance).

This is a popular choice amongst couples as it offers a more cost-effective way to protect assets like a mortgage, with only one monthly premium to pay.

Compare life insurance quotes from 20p-a-day through Reassured for joint level or decreasing term cover ¥ .

Budget Insurance critical illness cover

Critical illness cover is a type of cover that provides you with a cash lump sum pay out if you become critically ill (not terminally) during the term of your policy.

With Budget Insurance, you can add critical illness cover to your life insurance policy for an additional cost.

Key features:

  • The option to add critical illness cover to an existing Budget life insurance policy as an additional product
  • Child critical illness cover is not a standalone product but is included as part of your critical illness cover
  • Child critical illness cover pays out the lesser of 25% of the sum assured (respect of critical illness)
  • Includes children’s benefit up to £25,000 at no extra cost
  • Pays out if you’re diagnosed with one of the 21 critical illnesses included in the policy by Budget Insurance
  • Provides cover for as specified term (5 - 40 years)

What’s covered?

Budget Insurance includes 21 critical illnesses in their critical illness cover, this includes:

  1. Alzheimer’s disease
  2. Brain tumour
  3. Coma
  4. Cancer
  5. Blindness
  6. Deafness
  7. Heart attack
  8. Stroke
  9. Parkinson’s disease
  10. Multiple Sclerosis

Reassured can offer critical illness cover quotes from 33p-a-day º . Get in touch to compare your free quotes.

Budget life insurance benefits

Insurers typically offer exclusive perks to attract new customers, which can vary from one insurer to another.

Budget Insurance provides a diverse selection of benefits for customers to choose from:

Free Will

A free Will offered to customers, worth £150 according to Budget Insurance. This is an excellent benefit that can not only save you money but ensure that your estate is given to your desired beneficiaries.

For eligibility to access the Free Will offer through Budget Insurance, you must be a UK resident and have purchased an active life insurance policy through Budget Insurance.

According to it’s terms and conditions, the service is provided by: Farewill LTD, Gildeas Limited and Stewarts Solicitors.

If you have a joint policy, you’ll have the option to; one free simple will or a joint mirror will (where the wishes of one participant reflect the wishes of the other).

Trust

A free trust tool (being able to write your policy in trust) is provided to all Budget Insurance customers. Writing your life insurance in trust can help you to avoid/ minimise inheritance tax by 40%.

Legal advice

Being a Budget life insurance customer, means you’ll gain access to legal assistance for your ‘end of life’ matters, whether you’re seeking general enquiries from legal professionals, or you’d like to contact their 24/7 helpline.

Companions service

Teaming up with Red Arc, who provide experienced and registered nurses to offer support if you or a loved one become diagnosed with a critical, or terminal illness.

With an assigned nurse adviser from Red Arc, you are given guidance and information where needed, as well as emotional support through a hard time.

Cashback

For new life insurance customers only, Quidco (a guaranteed cashback company) are offering a deal where you can get cashback from a valid Budget life insurance policy.

Budget life insurance payout rates

Insurers pay out rate is a good indication into how reliable a company really is.

When a successful claim is submitted, a payout for the life insurance will be issued. This pay out sum will be given to the chosen beneficiaries.

Budget life insurance is underwritten by Scottish Friendly Assurance Society Limited, who paid out 99.1% of life insurance claims in 2021[1].

Budget life insurance pros and cons

PROsCONs
Standard policies can be affordable compared to many other insurersOnly offers 2 types of policies, whilst it keeps choices simple, the lack of variety may not suit every customer’s needs / personal circumstances
Includes free unique benefits, for example the companions service and cashbackCan be less cost effective for applicants with pre-existing medical conditions
Rated highly by customers with a 4.3 out of 5 stars on TrustpilotSmaller maximum sum assured (up to £750,000) compared to many other insurers

Budget Insurance contact number

To contact Budget Insurance regarding a new life insurance policy call: 0800 294 0807.

If you have any questions or need to make a claim then the number to call is: 0330 0188806.

Alternatively, Budget Insurance have a simple online ‘My account’ platform where you’re able to access information and documents from their website.

Compare term life insurance quotes

Whilst Budget Insurance lives up to its name offering affordable term life insurance policies, it’s essential to compare a variety of quotes and policies to ensure you’re securing the right policy for you at the best rate.

Unfortunately, Reassured can’t compare quotes from Budget Insurance, however we can compare quotes from some of the UK's best life insurance companies.

Reassured have award-winning services that can provide personalised fee-free quotes with no-obligation, meaning you can find the right cover without any pressure.

Why not reach out to one of our friendly professionals to begin your life insurance journey?

Secure Life Cover »

Sources:

[1] https://www.budgetinsurance.com/life-insurance/

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