How can I lower my Life Insurance costs?

How can I lower my Life Insurance costs?

If you are looking to get a Life insurance policy, we suggest not looking at the cheapest policy, as this might not be the right one for you. Ideally, you would want the best cover at the best price that suits your specific needs. Shopping around can be a bit tedious; we would recommend going to an Insurance Broker for this.

(Have a look at our article “Why you should use a Life Insurance Broker versus going direct to a Life Insurance provider” to find out more.)

Your Life Insurance calculations usually are set using a few factors such as age, health, lifestyle, and smoker status. These factors may result in your Life Insurance being expensive and outside of your budget.

However, there are some ways in which you could keep down the costs of your Life Insurance.

 

  1. Select the right amount of cover: Do your calculations, think about how much Life Insurance do you need to provide financial support to your family. To get an estimated amount, you will need to work out how much they will need if you are no longer around. A few things you could consider are mortgage, bills, education, etc. How much it would cost to cover all that? And how long does your family need this financial support? Be realistic. Can you afford to pay a huge life insurance premium that offers more than your family needs?

 

  1. Pick a policy that suits your needs: You might want to consider term insurance than the whole of life insurance. Term life insurance it’s cheaper and straightforward, this type of insurance only works for a certain period of time such as 10, 20, or even 30 years, e.g., until your mortgage has been paid off or even to protect your family when you die. The whole of life insurance it’s guaranteed to pay out at some point. Whole life insurance it’s designed to stay for an entire life, normally to age 120. Cash value accumulates over time and can be accessed if needed for any reason, it can also provide a guaranteed income after retirement.

 

  1. Start younger: The younger you are, the cheapest it is to get a life insurance policy. How? Very simple, you are less likely to die when you are young.

 

  1. Improve your health: If you are thinking of applying for life insurance, bear in mind you will be asked to complete a health questionnaire. The reality is, chances are that if you are a non-smoker, don’t drink too much, and get plenty of exercise, you’re less likely to die young, and therefore your life insurance cost will be lower.

 

  1. Lower your cover over time: Once you paid off your mortgage and your children are independent, why not lower your level of cover? You might find that you need less cover as your circumstances might have changed over time. If this is the case, you might want to consider decreasing term life insurance which it’s a policy designed to pay out less over time.

 

  1. Compare policies: As mentioned above, try to find the best insurance provider for your needs! It can be overwhelming if you do it one by one, therefore, considering going to an insurance broker can save your time and money! They will investigate different insurance providers considering your background and what your specific needs are and will find the best policy suitable for you.

 

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