Top 4 Tips for Saving Money on Life Insurance

Written by Mike

Topics: Finance, Insurance, Investing

Do you like thinking about life insurance? No, not many people do, and that’s entirely understandable – it’s a horrible thing to think about. Most folk find out that their work offer some form of death in service benefit, don’t ever read up on the terms and conditions, think “well, I probably won’t die for a while”, and then just carry on with their lives – I know this because I’m one of those people. However, a mortgage or similar may force you to take out a larger sum of insurance, and it’s at times like this you really need to get smart when it comes to life cover. With that in mind, here are my top 4 money saving tips for life insurance:

1 – Quit smoking

If you want to save money on your insurance – as well as retiring both young and healthy, then cutting out the ciggies is a really good idea. Not only does quitting smoking mean you’re less likely to use your policy throughout its term, it will also make the policy a great deal cheaper in the first place. The increase in price between a policy for a non smoker and a smoker can sometimes be in excess of 100%, so the quicker you stub it out, the better.

2- Lose some weight

60% of people in the UK are now classed as being overweight; as a nation it would seem that we are slowly ballooning. However, making the effort to shift a few pounds can make all the difference to your life insurance premium – a BMI of over 30 will likely incur an increase in premium costs of around 50%, whilst a BMI of 37 will see you struggle to get cover at all.

3-Be realistic in your needs

Of course, we’d love to be able to leave our loved ones a huge lump sum, pay for the kids to go through uni and cover the mortgage, but the fact remains that the larger the sum you insure, the more expensive it will be – especially as you get older. Be realistic in what you cover – you might struggle to make premium payments if you set the amount covered too high, but at the same time a sum that is too small would leave your family in trouble should the worst happen.

4- Shop around

This might seem simple, but if you have medical conditions that will affect your policy it’s especially important to shop around different providers – different companies assign different levels of risk to different conditions, so by getting a few quotes you could save yourself a huge wodge of cash. Using a broker or comparison service can really help save you some money, and often their staff will know exactly who to go to for what.

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