Thinking of buying life insurance, but worried it will cost too much?
This might come as a surprise, but there are plenty of affordable life insurance options out there for just about any budget. So, if you want to put some financial protection in place for your loved ones, but you’re concerned about affordability, there’s no need to worry. There are plenty of ways for you to put protection in place without breaking the bank, and here’s how...
Find a suitable policy
Why commit to spending thousands of pounds on a policy that falls short when your loved ones need it most? Choosing a policy that meets your family’s financial needs is one of the most important aspects of buying life insurance. But to find the best policy for you, you should understand the difference between various policy types.
Don’t get more insurance than you need
It’s important to identify what you would like the benefit amount to cover and how long it needs to last. You can then calculate the ideal benefit amount and a rate of monthly premiums that work for you. Remember to buy only what you need. There’s no point in paying for a sum insured of £400,000 when your family only need £200,000.
Consider your family's financial needs and work out what size benefit amount they will require. You can always use our Life Insurance Calculator to help you find a suitable benefit amount.
Choose the right period of time for a term policy
Getting your term right is essential to saving money on your life insurance policy. If you choose too short a term, you may end up having to take out another policy down the line, when premiums will be higher because of your age. If the term you choose is too long, then you might end up paying for cover when you no longer need it or you could end up paying more into the policy than the value of the final benefit amount.
Consider buying life insurance sooner rather than later
Your health and age usually affect the cost of your monthly premiums. That’s why getting cover while you’re younger could result in a better rate, allowing you to secure a larger death benefit at a more affordable price.
If you're aged 50+, you could consider taking out an Over 50s Life Insurance Policy. With this policy type, acceptance is guaranteed for any UK resident aged 50-80.
Smoking is bad for your health, and that’s why it can drive up your premiums. Depending on the policy, it may allow you to apply to reduce your premiums if you quit smoking for a certain period of time.
Consider a joint policy
Another way to potentially save money on life insurance is by taking out a joint policy as opposed to two separate policies. It could work out cheaper. Yet, there could be a downside as some joint policies usually only pay out when one person dies, so you must review the policy in detail and then decide if this is the right choice for you.
Don’t buy unnecessary optional extras
A lot of policies offer add-ons and optional extras like children’s cover or critical illness. If you don’t feel you need extra cover, then great! You could save money depending on the policy.
Buy online through a comparison website
Sometimes buying through an independent financial adviser can be more expensive than using a comparison website like Choozi. In fact, using Choozi could save you up to £280* per year. Our price comparison tool gives you a chance to save money and get the right cover for your family from leading UK insurers. We’re impartial meaning it’s our mission to help you make smarter life insurance choices.
Review your policy every few years
With most types of insurance, it’s a good idea to check in on your policy every few years and find out if you’re getting the most bang for your buck! Is there a better deal elsewhere? Are you getting enough coverage to help protect your family? Consider reviewing your policy every few years to find out if you can get a better deal elsewhere. You can always change insurers if you come across a far better rate.
Look after your health
General poor health can also affect your premiums. This is because of the risk the insurer is taking in relation to the likelihood of your death. If you’re serious about saving money on your insurance, you might find you have to make some lifestyle changes. This could mean losing weight, quitting smoking or exercising regularly. In many cases, you must disclose any medical conditions you have.
If you’re in good health, don’t shy away from taking a medical examination because it could save you big bucks by securing a more affordable deal.
Getting the ball rolling
Now that you’re armed with these handy tips for saving money on your life insurance, you can start comparing life insurance policies from leading UK providers. Your perfect policy is just a few clicks away with Choozi!
* Based on Life Insurance for a 30 year old with £100,000 of cover over a 20 year term