A simples guide

How can I lower life insurance premiums?

We’ve all been there – tut, tutting at our outgoings and thinking ‘how can I save some money’ so when it comes to forking out for life insurance, you might think it’s an expensive luxury. But is it really? If you have family that rely on you and your income to survive how would they manage if something were to happen to you?  Life insurance can help reassure and protect your loved ones from financial worry and uncertainty so here’s what you can do to make sure it’s affordable.

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What affects the cost of life insurance?

Various factors about your general health will affect your life insurance premium such as your age and your weight to height ratio. Lifestyle choices such as whether you smoke will also be taken into consideration. Your insurer will also ask you about your family’s medical history and whether you’ve got any pre-existing health issues.

As tempting as it is to be economical with the truth – don’t be. Little white lies or purposely holding back information about existing health issues are likely to invalidate your policy. So always be honest and offer full disclosure (better to bore your insurance provider with your life story than hold back and jeopardise your family’s economic future).

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So what can I do to get cheaper life insurance?

Everyone loves getting a good deal, so here are some areas you might want to consider before you start comparing the market for life insurance:

• Get the right amount of cover – Goldilocks had the right idea and you shouldn’t settle for anything less than ‘just right’ and that means accurately working out how much insurance you need. So think about what your life insurance pay-out needs to cover, is it just the mortgage or is it to also replace your lost income or is it to pay off outstanding debts? Underestimating how much your dependents will need will leave them short but overestimate the amount and your premiums could increase.

• Be choosey about policy type – there are two main types of policy, term life insurance tends to be cheaper because they’ll only cover you for an agreed period of time like 10 or 25 years. If you pop your clogs after the policy term ends, you won’t get anything. But moving to the afterlife whilst the policy’s active will give your dependents a lump sum payment.

Whole of life policies cover you up until the very end – whenever that may be, so your dependents will always receive a pay-out (so long as you’ve paid your premiums), but these types of policies are more expensive.

• Invest when youth is on your side – the older you get, the more expensive premiums become so strike before too many wrinkles set in. At the younger stage of your life, insurance providers tend to think of you as less risky as you’re more likely to be healthy and less likely to claim, so insurance premiums are lower.

• Be healthy – sounds basic but to live long and prosper, you need a lifestyle that’ll encourage that. So it’s about being the right weight and making sensible lifestyle choices (like cutting back on the cigs and booze) and maybe even join a gym (you’ll be amazed at how much lycra can hold in nowadays). Even if you’ve got an existing policy, if you’ve changed your ways and can sustain the good habits, see if your insurance provider will reduce your premium to match your new slim-line silhouette.

Start comparing

The only way to be sure about what’s out there, is to compare the market, that way you can see who’s offering what. But we don’t just provide a great search at your fingertips, if you’d rather talk to an expert – well, we can do that too. Just give our partner LifeSearch a call on 0800 072 1141 and you can chat with a specialist advisor – what are you waiting for?

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