Life Insurance Tips
Many people may regard life insurance as expensive, and this may deter them from obtaining life cover. However, there are numerous options for life insurance and it is a competitive market so you may find that life insurance cover is not as expensive as you think. Additionally, there are a number of steps that you can take to make sure that you are getting the most for your money when it comes to life insurance. Try following some of our tips:
- Opt for term insurance rather than whole life insurance. Although term insurance expires after a fixed period, it is substantially cheaper than whole life insurance.
- Look out for life insurance companies that have incentive schemes for people who maintain a healthy lifestyle. These can give you discounts off your premiums and from products or services offered by other companies participating in the scheme. Apart from these schemes that are operated by several life insurance companies, you will generally find that the cost of your life insurance is less if you are a non-smoker, don’t drink much and aren’t obese.
- Life insurance companies will charge higher premiums for people with dangerous jobs or hazardous pastimes such as sky diving. Therefore, a change of job or hobby could reduce your premiums significantly. If you have a fixed rate policy based on a previous lifestyle, which has now changed, it may be worthwhile shopping around for a replacement life insurance plan.
- If you are over 50, look out for companies that specialise in life cover for your age group or that have policies specifically for your age group.
- You don’t have to settle for the life insurance cover offered by your bank or mortgage provider as they are often tied in to one particular life insurance company. Instead it is better to obtain quotes from an intermediary or a website such as this one that can obtain quotes from a range of different companies.
- When you receive quotations, compare policies to see what is included so you know which one represents the best value for money. You may find that some cheaper insurance has certain exclusions so it is always best to read the small print to check exactly what is covered by your life insurance plan.
- Purchase insurance whilst you are young as premiums are likely to increase as you get older.
- Choose your level of benefit and length of cover in accordance with your budget. It may be best to take out a flexible life insurance policy which allows you to increase the benefits or the term, and the premiums accordingly, if your finances improve in the future.
- Select a life insurance plan with guaranteed premiums rather than reviewable ones so that the cost is not likely to increase in the future.
- Check whether you already have some degree of cover, for example with a mortgage protection policy or group life insurance through your employer. If you already have some life cover, you could take out another life insurance policy to supplement it rather than taking out life cover for the whole amount of benefit that you require.
- If you have a spouse or partner, look into the possibility of a joint policy rather than two single ones as this may work out cheaper. You should be aware though that the life insurance cover may terminate when one of you dies so check out all the terms and conditions attached to the policy.
- Females are usually classed as a lower risk than males and statistically they live longer so life insurance premiums are generally lower for women than for men. Unfortunately, if you are a man there is not much you can do about this, but you can follow some of our other tips to reduce your life insurance premiums.
It is important to always be honest with your insurance company as any non-disclosures could invalidate the policy. For example, if you do not declare that you are a smoker, and you die of a smoking-related illness, your insurance company may refuse to pay out the lump sum.
If you would like to receive some life insurance quotes from our many life cover providers, please fill in our quick and simple online form. We will then get back to you with details of life insurance plans that suit your requirements.