5 tips for getting cheap Life Insurance

Published: Jun 01, 2022

Life is packed full of uncertainties, of which we are often unable to control. Life insurance cover is an easy way to protect your family from any financial burdens placed on them after your death. Though life cover may seem expensive over time, there are a number of ways to get a cheap life insurance policy…

What affects the cost of life insurance?

There are a number of factors that affect the cost of a life insurance policy, such as:

  • Age
  • Health
  • Occupation
  • Smoker status
  • Policy type
  • Policy length

However, there are plenty of ways to cut the cost of your monthly premiums…

1) Buy Term Life Insurance

Term life insurance is typically cheaper than whole life policies – which cover you for the rest of your life. Whereas, this type of cover only lasts for a set period of time (i.e 30 years). Your policy will only pay out if you die during this policy term. When this happens, your beneficiaries receive a cash lump sum, paid out by your insurance provider.

However, there are some drawbacks to owning term life insurance. For example, if you die once the policy expires, you won’t be able to make a claim or receive any money for premiums previously paid.

There are 3 types of term life insurance:

  • Level term cover – Both the cost of your premiums and pay out value remain the same throughout the policy. This type of policy is regarded as the standard form of term life cover.
  • Increasing term cover – Designed to protect the pay-out value from inflation. Over time, the pay out amount increases to maintain its value. One downside is that your monthly payments can also increase.
  • Decreasing term cover – Designed to cover large payments that your family would struggle to pay by themselves after your death, such as a mortgage loan. The payout value decreases over time as you make repayments.

2) Buy cover at an early stage

The cost of life insurance rises as you get older. This is mainly due to the fact that you are more likely to die or develop medical conditions as you get older. Therefore, if you want cheaper premiums, it’s a good idea to buy life insurance when you are younger.

With policy types like whole life insurance and level term life insurance, your premiums are fixed throughout the term. So buying cover early can allow you to lock in a cheaper premium rate, saving you money in the long run.

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3) Consider getting a joint life insurance cover

If you want to make sure that both you and your spouse receive the money after one of you dies death, then you should consider purchasing a joint life insurance. A joint policy can cover two people under a single policy and can be cheaper than buying separate policies.

Joint cover either works on a first or second death basis. With first death – the policy pays out after the first death in the couple. It then ends leaving you or your spouse to take out additional cover if still needed. Second death pays out once both spouses have died.

4) Shop around for the best quotes

The internet is full of bargains – if you know where to look. Shop around for the lowest rates and you may just find a policy that matches your personal circumstances. There are many different companies that offer life insurance, but you can use comparison sites to narrow down your search.

You can also use a life insurance broker. This is a team of insurance specialists that can provide advice, as well as helping you find a policy that matches your financial needs.

5) Try to live a healthy lifestyle

Your health plays a huge role in how much your monthly premiums for life insurance will cost. Having a poor diet, exceeding alcohol limits, and smoking can all affect your life expectancy. Therefore, in the eyes of your insurer, you may be deemed a higher risk to insure.

Most insurers charge higher premiums for smokers compared to non-smokers. Despite this, they may offer to reduce your premiums providing you manage to stay smoke-free for at least 12 months. Get in touch with your provider for the full terms and conditions.

How much cover do I need?

 The brilliant thing about life insurance is that it can be used to help your family with almost any type of cost. Essential the pay out amount of your policy should reflect your current monthly earnings and outgoings. That way, if you die, you’re family won’t be left out of pocket.

The pay out from your life insurance policy can help towards costs such as:

  • Household bills
  • Living costs
  • Mortgage repayments
  • Funeral costs
  • Medical expenses

In conclusion, life insurance shouldn’t have to leave you out of pocket. Simply head online and use some of these tips to save money on cover and provide your family the peace of mind they deserve.