Hints ‘n’ Tips for saving money on Life Insurance
Are you looking for life insurance? Maybe
you’re in the process of applying for a mortgage, have a new arrival in
the family or are just being safe – whatever your reasons, you’ve
likely discovered just how expensive insuring your life can be.
So, what can you do to save yourself money on your term assurance?
Well, there are a few things you can do – and some of them you should
probably think about even if you’re not looking for life cover!
Bin the smokes
Are you a
smoker? Cut the habit. This is handy for a whole number of different
reasons in terms of life insurance: Your application is likely to take
less time, you’re less likely to actually make a claim on the cover
during this time, and the longer it’s been since you stopped smoking
the cheaper a life insurance policy is. If you don’t think you can stop
then at least cut down, although some insurers will not consider a
forty a day chainsmoker much different from somebody who has a cigar or
two on special occasions – and the difference in premiums between a
smoker and a non-smoker can be tremendous.
Shed a few pounds
The nation as a
whole is getting fatter – that’s a sad fact. However, that’s absolutely
no excuse for you to be lax when it comes to what you eat. You’ll be
hard-pressed to find a life insurance provider that won’t load your
life insurance premiums based on your BMI to some extent, and the
higher you let your BMI creep the more protecting yourself will cost.
If your BMI is above 30 you can likely expect a 50% increase in the
cost of your policy, whilst a BMI of 37 or above would probably stop
you from getting life insurance altogether.
Single or joint?
Joint policies have obvious
benefits – yourself and your partner/spouse are both covered under one
policy, for example, and it means only one payment needs to be made
each month. However, you might be surprised at quotes for two single
life policies, depending on your circumstances: If one provider loads
heavily against people with certain conditions it may be easier to
split the policies, and you end up with two separate lots of cover
should they be needed.
Work out your sum assured carefully
We’d all love to
be the person who leaves their family a huge amount of cash after
they’re gone, absolving them of monetary worries in a heartbeat – but
unfortunately unless you have a tremendous amount of free cash every
month that isn’t really what life insurance is for. Be realistic in
your needs; if the only real priority you have is the mortgage on your
home, only cover that. The more money you assure yourself against, the
more expensive doing so will be every month.
Price up the market
This might seem
obvious to some, but many people will simply wander into their local
bank and take out insurance with them as they know them – but by
shopping carefully you can really save yourself some money – especially
if you have medical conditions which you need to declare. Certain
providers are more lenient towards certain conditions – using a
comparison site or broker can often help you do this both quickly and
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"Once you eliminate the impossible, whatever remains, no matter how
improbable, must be the truth." —Sherlock Holmes