How can I save money on my life insurance cover?
Life insurance can be a very expensive investment but one that can secure the future for your family if you pass away. Prices can vary by as much as 50% for a policy containing the same level of coverage so it is important that you choose the right policy or you could end up paying way over the odds. Getting quotes from as many insurance companies as you will increase your chances of getting the best price available. You could also use a quote finding service which will work out real quotes from leading insurance companies and you might even come across a quote at a great price from a company that you hadnít previously considered.
There are two main types of life insurance, although there are many other optional features as well. These two types are whole life insurance and term life insurance. Term life insurance is an insurance policy that lasts for an agreed fixed term whereas whole life insurance is a policy that continues until you die. Therefore a pay out is guaranteed with a whole life insurance policy and you will only receive the pay out with a term life insurance policy if you die within the term. As a whole life insurance policy will probably last for a much longer period of time it is likely to be a much more expensive policy. Therefore if you have a limited budget you will probably have to go for a term life insurance policy.
Within these two classes there are many options. There are simple pay out only policies, policies that include savings/investment elements as well as the agreed lump sum pay out and policies that can protect your mortgage or help you out if you are diagnosed with a critical illness. Whilst you might end up paying more up front for some of these features the benefits are probably worth it to either yourself or your beneficiaries if you are diagnosed with a critical illness or die.
As well as saving money on the price you can also help your premiums by saving money on your lifestyle too. Smokers usually have higher premiums than non smokers and customers who have high risk careers or hobbies such as hand gliding or rock climbing will also probably have higher premiums due to the increased risk of death.
So the best way to save money on your insurance cover is to start a new lease of life by leading a healthier lifestyle. Cut back on the alcohol, quit cigarettes and get yourself in good shape. Family medical history can also affect the price of your premiums, so if thereís anything that you can do to reduce the chance of a hereditary problem affecting you then it is probably worth it (you must of course make sure that this doesnít lead to further medical problems and that you listen to professional medical advice as and when is necessary).
Disclaimer: The information contained on this page is not intended, nor should it be construed as providing any form of financial advice or guidance as to which insurance product/policy is right for you. If you are unsure as to which product meets your requirements/needs you should always seek advice from an Insurance Professional.