Reducing the cost of your life insurance
The best way to cut the cost of your life insurance is to make sure you select a policy which provides cover specific to your needs. The following will aid you in getting the best cover at the most competitive price.
What should I consider?
Before investigating life insurance policies pinpoint what your needs are. Decide:
- When you should get it
- What cover you need
- How long you’ll need it for
When should I apply for life insurance?
The earlier you apply, the cheaper your premiums will be. In fact policies can be taken out from as young as 18 years of age, but that doesn’t necessarily mean it’s a good thing to do.
The most important consideration is whether you need it. For example, having children or taking out a mortgage are usually good times to look at policies available to you.
I have a partner, can we get a joint policy?
Joint life insurance policies are available and are usually cheaper than two individual policies. However, the saving on a joint versus two can be small and payouts are only made after the first person dies.
Again, think about your need for a life insurance policy. If it is to pay off the mortgage, then a joint policy could be a good option.
How much cover do I need?
The more cover you have the higher your monthly payments will be, so it is good practice to consider what that payout needs to do. Think about:
- Do you have a mortgage and/or any other borrowing? Select an amount which will provide enough to at least cover these items
- Do you have children or other dependants? You may want a payout to support them after you die. How much will they need?
What policy term should I choose?
Now you know how much you need as a payout, you can consider your policy terms:
- Those with a mortgage may want to match the repayment term of that mortgage so that if you die before the mortgage payments are completed the life insurance payout will cover the outstanding amount.
- Parents may want to choose cover which will last until their children reach a certain age. You could select an age when your children are likely to move out of home and require a deposit for a house of their own
How do I get a competitive price?
Once you’ve done your research and you know exactly what you need from your life insurance you can shop around. It’s prudent to gather in as many life insurance quotes as possible in order to find the one which provides the best cover at the cheapest premiums.