| By Chris Johns
If you have a family or other dependants who
rely on you for financial support, a simple
life insurance policy can provide real peace
of mind and a financial safety net for those
left behind should you die within the policy
term.
Many people assume that life insurance is just
too expensive to bother with. In fact, when
you know what cover you need and how to compare
the market, it’s not that difficult to
find affordable life cover.
Apply just some of the tips below and you could
cut your premiums by up to 40%.
Decide what you need before you shop
Shopping around is crucial to getting a good
deal but when you know what you want it’s
easier to find. The same applies to shopping
for life insurance. With so many insurers and
policy options, the only way to make sense of
it all is to do your home work or take advice
from an insurance expert. Whichever route you
take, once you’re certain you can filter
out much of the market and compare like with
like to reveal the best deals.
Consider term insurance
Term Life Insurance is much cheaper than other
types of cover such as Whole Life Insurance,
simply because the policy doesn’t last
as long. In some situations it can be more appropriate
to save the money and get term insurance anyway.
This is particularly true if you’re recently
married or plan to start a family. This is often
is a time when it’s difficult to afford
life insurance, but you can get all the protection
of whole life insurance at a much reduced rate,
simply by choosing a fixed term that coincides
with a period of risk. For example, buying a
policy for family protection that lasts until
your children are eighteen or twenty one.
Use a discount broker
If you know what cover you need, using a discount
life insurance broker can save you time and
money. Discount brokers can compare multiple
big name insurers and provide policies below
their standard premium rates by sacrificing
some or all of their commissions. There’s
no real disadvantage to using a broker, however
you may have to do some extra research, as they
won’t generally provide you with any advice.
Get it while you’re young
Life insurance is cheaper when you’re
young, because your risk of dying is lower,
and therefore the risk of insuring you is also
lower. Save some money in the long run by buying
a policy in your twenties or thirties rather
than waiting till your forties or fifties.
Stay healthy
Applying for life insurance usually means declaring
your health history and lifestyle which may
result in a medical examination. The results
of that examination will play a big role in
determining how much your insurance costs. Cut
your premiums by staying fit and healthy, and
quitting if you’re a smoker. On average
a smoker pays twice as much for life insurance
as a non-smoker does, making a huge difference
in the amount you pay over the term of a policy.
Pay premiums annually
You can save around 15% on your life insurance
premiums simply by paying annually instead of
monthly.
Remember to review
Once you buy life insurance, don’t assume
that the policy you get in your twenties will
still meet your needs by the time you’re
in your forties. Your insurance needs change
when you get married or start a family, when
you pay off your mortgage, when your children
become financially independent—and yet
again when you retire. Reviewing your policy
every three years or so will ensure that it
continues to meet your needs and provide value
for money.
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