Most people take out life insurance to cover any debts that may be outstanding when they die. Life insurance also helps to cover funeral expenses and compensate lost income for your family. Life insurance should mean security and peace of mind for you and your loved ones in the event of your death, but that doesn’t mean it should cost you an absolute fortune to take out an effective policy. At Cuuver, we compare life insurance deals from some of the most reputable companies in the UK to ensure you get a great price on your policy.
Nonetheless, there are a few simple things you can do to cut down the cost of your life insurance. These small hacks don’t cost a penny and could mean the difference between unnecessarily paying too much life insurance and getting a fantastic break on how much you need to pay each month.
Get the right type of cover
Before you take out life insurance, you should do some research into the best type of cover for your circumstances. There are two common types of policies: mortgage life insurance and level term insurance. Mortgage life insurance is supposed to pay off any outstanding mortgage payments if you die. In comparison, a level term policy establishes the payout at the start and remains that way. With this type of policy, you should be certain you can keep up with the monthly payments.
How long do you need?
As an example, if your mortgage is set to be paid off in two years’ time, you won’t need to invest in an enormous policy. On the other hand, if your mortgage payments won’t be completed for another ten years, you should consider a longer term; if you take out a longer term, you will pay more.
Get in shape
This doesn’t mean you need to join a gym and cut out doughnuts, but remember, the price of life insurance is based on liability. The healthier your lifestyle, the less your policy is likely to cost. Life insurance companies will consider your family’s medical history, so if your family has a history of heart disease, now’s the time to quit smoking and embarking on a healthier diet. The higher risk you pose, the higher your payments will be each month.
Buy sooner rather than later
Taking out a life insurance policy while you are young and healthy will mean lower premiums than if you choose to leave it to later on. This is also the case if you have a family history of health problems.
Keep a clean driving license
A clean driving license can mean the difference between a high premium and a low one. If your driving history is littered with speeding offences and other traffic violations, you’re likely to be considered a liability, meaning your life insurance costs will be higher.
Reconsider how much you actually need
You should get a sense of how much life insurance you’re really going to need to secure stability for your loved ones if you die. What expenses would your spouse be left with? As obvious as it sounds, buying too much life insurance can increase your costs significantly.
At Cuuver, we help people find the very best deals on their life insurance policies. Head over to our page now to start comparing policies from some of the UK’s leading insurance providers.
This should not be constructed as advice and is guidance only.