At Life Insurance Cover we strive to provide cost effective Life Insurance protection policies to our customers. As an FCA regulated broker who searches all of the UK providers. We have been able to cut the cost of Life Insurance protection for many families. One of the many assumptions that many people make is that Life Insurance is too expensive.
In today’s guide we take a look into how to cut the cost of your Life Insurance and with many policies starting at £5 a month it is not as expensive as you may have thought. A protection policy for you and your family might be one of the best things to buy in 2021.
Many people significantly overestimate the monthly premium cost of Life Insurance and therefore are quite surprised at its actual affordability. Although the monthly premium cost of cover may be a lot less than you think. We have put together lots of different ways that you can reduce the price of your Life Insurance premiums.
Here are a few helpful tips that will help you cut the cost of your Life Insurance:
Should I Shop Around For Life Insurance?
There are many different Life Insurance providers in the UK who offer different types of policies to customers. Each provider also offers different prices for a protection policy. Therefore, with so many different products available, it always pays to shop around and do thorough research.
If you are looking for a simple Life Insurance policy, protection for an ongoing pre-existing medical condition. Or you may have a few questions, it can be helpful to use an FCA regulated broker.
The benefits of using an FCA regulated broker, like Life Insurance Cover can widely benefit your search for the best policy possible. We search and compare Life Insurance from all of the UK providers to find the right cover for you. By allowing Life Insurance Cover to help you cut the cost of your Life Insurance. You will get the best Life Insurance premiums possible for you and your family. Saving you time, money and providing for the future of your loved ones.
Will Quitting Smoking Make Premiums Cheaper?
The simple answer is yes, this is because smoking increases the monthly cost of a Life Insurance policy. Because smoking has such a large negative impact on your general health and wellbeing. Many Life Insurance providers will charge you a higher premium. It is also worth noting that e-cigarettes and vapes are currently classed as smoking products and a monthly premium would be the same as a smoker.
By taking proactive steps to stop using smoking products including cigarettes and vapes will cut the cost of your Life Insurance. If you have successfully stopped smoking for more than a year. It could be beneficial to compare Life Insurance quotes online and get a new quote as a non-smoker. You may find the monthly premium cost of Life Insurance cover is radically reduced. A new policy as a non-smoker may even be cheaper than the current monthly premium you are paying.
Some Life Cover providers will not usually allow you to adjust your existing Life Insurance protection to reflect your new non-smoker status. Whilst a few providers will allow you to amend your current policy, after submitting new medical information including a blood test. If a provider will not offer to amend your policy, you may be able to take out a new policy as a non-smoker. This will help you to reduce the cost of your Life Insurance Cover.
A key point to remember is to always wait until your new Life Insurance has started before cancelling any existing cover.
How Much Life Insurance Should I Choose?
When making the important decision of putting a Life Insurance policy in place for the future. It is very important that you choose the right level of cover. Detailed below are two very different examples, being under insured and over insured.
Under Insured: If you decide to purchase a Life Insurance policy with a very small benefit amount (this is the amount you want your loved ones to have). You could leave your family and loved ones facing financial problems after you pass away. Most issues relating to being under insured are the inability to repay a mortgage or pay monthly bills or other family outgoings.
Over Insured: In an ideal world, every parent would like to provide financial stability for their family after they pass away. However, taking out too much Life Insurance cover can be a large financial mistake. Many people who have made this mistake base their decision on their current income circumstances. When choosing the benefit amount you have to consider the longer term future including, are the premiums sustainable? Would your pension be able to support the cost of the policy? Or you might find that you’re simply paying too much for cover you don’t really need.
When taking out a Life Insurance policy, think carefully about exactly how much you need and what it needs to provide for. You will also need to think about how much it would cost to:
- Pay an outstanding mortgage
- Replace a household income
- Pay the monthly rent and household bills
- Provide for your children
What Type Of Life Insurance Policy Do I Need?
There are many different types of Life Insurance offered to UK customers, each different policy type will have a very different monthly premium cost. Detailed below are the most popular types of Life Insurance policies available.
Whole Of Life Insurance: Also referred to as Life Assurance, this policy type will make a payment to your family and loved ones after you pass away. A Whole of Life policy is usually the most expensive type of policy as it does not have an age limit. Some providers offer monthly premiums during a pensionable age or till you pass away. This policy type is popular with Over 50s as it does not require a medical.
Term Based Protection
Level Term Life Insurance: This policy type is named Level Term because it will make a payment to your loved ones for a fixed period of time and the amount does not reduce. Many of the UK Life Insurance providers will offer a protection policy to customers up to a maximum age limit (this varies between providers). Once the maximum age has been reached the policy will lapse and a claim payment would not be made. This policy type is usually cheaper than a Whole Of Life policy because it is only covering a set period of time.
Decreasing Term Life Insurance: This policy type is usually used by new families, new home owners or people in new relationships. A Decreasing Term Life Insurance policy is a very good way of cutting the cost of Life Insurance. Because the benefit amount reduces over the length of the policy, the monthly premium are very low at the time of starting a policy. It is a useful type of policy to protect a mortgage, or ensuring a lump sum is available to your family.
Combined Life Insurance & Critical Illness Cover: This policy type can be beneficial for many UK adults, this is due to the dual protection nature of the policy. A combined policy can be either level term or decreasing term to match your individual need. However, by choosing this policy type will restrict your ability to claim for either Critical Illness or Life Cover protection. This is because this policy type can only make one claim payment.
An FCA regulated broker, like Life Insurance Cover can help you to find the right level of cover if you are not sure which type of cover is right for you.
Is It Better To Buy Life Cover With My Mortgage?
When starting out on the housing ladder as a new couple, young family or maybe even on your own. Most people will need a new mortgage to buy their new home. During the mortgage application process, especially with a high street bank or building society. It is extremely likely that an adviser will encourage you to take out a Life insurance protection policy with them.
While it may seem very convenient and helpful to have your mortgage and Life Cover all in one place. It is very unlikely that your bank will offer the best terms for the cover you want.
Although it is important to protect an asset like a family home. It is important to remember that you do not have to buy a Life Insurance policy from your mortgage lender. As detailed above, it really can be beneficial to shop around or use an FCA regulated broker when it comes to Life Insurance.
Before accepting a deal from your advisor or high street bank. Simply go online and Compare Life Insurance Quotes or take advantage of our free, no obligation quote comparison service. You could be surprised at how much you can cut the cost of Life Insurance protection.
Should I Review My Life Insurance Policies?
As with all financial products that require monthly or annual payments. It is always important to review insurance policies including car, household, pet and Life Insurance. Unlike the standard annual policies, it is important to review your Life Insurance Cover every two or three years to make sure your premiums remain competitive. Simply go online, get a quick Life Insurance quote, and compare the cost of cover with your current monthly premium.
By reviewing your policies every couple of years, will make it easier to identify if your circumstances have changed. Perhaps you have made lifestyle changes including quitting smoking, changed jobs or your health is better. By making these changes could mean that you can cut the cost of Life Insurance protection with cheaper premiums.
Will A Policy Be Cheaper If I Am Younger?
Unlike car insurance which has high monthly premiums for younger people. Due to the likelihood of them making a claim against a policy. The reverse applies for Life insurance protection which means that the younger and healthier you are, the cheaper the premium will be. In its most simple terms, if you are younger you’re statistically less likely to pass away in the next 25 years then someone much older.
So, by choosing to compare Life Insurance and take out Life Cover when you are younger can be a great way to cut the cost of Life Insurance.
For example, if you were to obtain a policy aged 24 and did not smoke requiring £100,000 of protective cover for 30 years. The average cost would be £6 per month. The total cost for the policy over the full term would cost £2160.
However, if you decided to take out £100,000 of protective cover as a non-smoker over 30 years as a 38 year old the average monthly premium would rise to £11 per month. For this policy the total cost over the length of the term would be £3960.
By choosing to be proactive and buying Life Insurance as a young adult. Would mean that you save approximately £1800, which means more money in your pocket than paying to protect yourself for the future.
Is It Worth Getting A Joint Life Insurance Policy?
If you want to cut the cost of your Life Insurance Cover. Choosing to buy a joint-life policy can be much cheaper than protecting two individuals with separate policies.
Many new home owners, couples and young families choose Joint Life Insurance. As a cost effective method of protecting the future of their families. By choosing a Joint based protection policy will ensure that both you and your spouse or partner are protected. The policy will pay out if either of you pass away within the term.
However, there are two major drawback with this policy type:
Only one claim can be made: Although a cost effective way to reduce the cost of long term protection. A Joint Protection policy will only pay out once. After that the policy will lapse and the surviving person will not have the protection that they need. This could be a contributing factor when deciding on the monthly premiums if you have children.
Some couples split up: As many people will confirm, some relationships do not stand the test of time. Which means that Joint Protection Cover can also sometimes be an issue if you later separate from the other policyholder. Many insurers will not let you simply “split” a Life Insurance policy. So you may have to cancel the cover and take out new policy, which could be more expensive.
A key note to remember is that not all Life Insurance providers are the same. Some providers will offer a policy on the same terms as initially purchased. By using an FCA regulated broker, like Life Insurance Cover can help you to identify potential pitfalls when buying Joint Life Cover.
Making Lifestyle Changes Will Cut The Cost Of Life Insurance
As detailed within our many posts relating to what is defined as an impaired risk. Including the importance of being as fit and healthy as possible. By choosing to live a healthy lifestyle will be better for your long term wellbeing and also mean that you are less of a risk to an insurer.
Many Life Insurance providers offer incentives and rewards to individual who actively try to look after themselves. By making small lifestyle changes can mean the difference in monthly premiums and your Life Insurance should be cheaper.
Hopefully you will have read our post about how stopping smoking can reduce your premiums. If you drink less and get plenty of exercise, then you might also see the cost of your cover come down.
Positive Steps For 2021 And The Future
With 2020 now in the rear view mirror and the positive roll out of global roll out of vaccinations against Covid19. Many lessons have been learnt through the pandemic including what is truly important to families around the world.
By taking positive steps to make differences in our lives, local communities and the wider world in general we rediscovered the importance of being united in the battle against Covid19.
Making positive changes to our lives in 2021 including what we choose to eat, how we exercise, keep healthy and interact with others in our communities. Will not only be beneficial to everyday life for everyone but can be sustained for the future.
By making important choices today can make positive impacts for the future of loved ones and families.
Protect Today And Provide For The Future
As detailed in today’s guide there are many different ways to save money on household monthly outgoings as well as protecting yourself for the future. By using an FCA regulated broker, like Life Insurance Cover in your search for the right level of protection can help to save money. Including helping to find the best type of policy for you and your family. By making the important choice to compare Life Insurance quotes today and protect yourself for the future. Will offer peace of mind to you and your loved ones that the family future is secure.