In this, our latest guide, we look at some of the best ways you can save money on your UK life insurance policy.
Choose the right policy
First things first, you need to make sure you’ve got the right type of policy for your circumstances as there are two main types to choose from; Term and Whole of Life Insurance.
Term life insurance
Term life insurance will pay out if you die during the policy’s duration, with the length typically being connected to a term of a debt such as a mortgage. You can choose between Level Term, which pays a set amount regardless of when you die, or Decreasing Term, which has a payment that reduces over time, in line with your mortgage payments.
Whole of life insurance
Whole of life insurance, as the name suggests, covers you for the rest of your life and is therefore guaranteed to payout so long as you keep up to date with your regular payments. Being that it will definitely payout, it’s usually more expensive than term insurance.
Choosing the right policy
It’s vital that you choose the right policy for your circumstances and that’s where a life insurance broker comes in. They can help you find the best policy for you and navigate all the jargon and complexities.
Set the term correctly
When you’re setting up your life insurance you need to think carefully about how long you’d like it to run for. You might, for example, want it to run alongside the term of your mortgage so that if anything did happen to you, your loved ones could remain in the family home. Or, you might choose for the term to be set at just a few years, as after that your dependants will have left home. Either way, getting the term right is important as making it for longer than is necessary, will mean you pay more than you need to.
One of the best ways to reduce the cost of life insurance is by comparing policies, that being said it can be a time consuming and complicated process. We’d always recommend using a life insurance broker as they will reach out to all of the best life insurance companies on your behalf and provide you with customised advice for your specific circumstances.
It’s tempting when taking out a life insurance policy to get as much cover as possible, but remember it needs to be affordable both now and in the years to come. For example, there’s no point getting £500,000 of cover when your family could just as well manage with £150,000.
Give up smoking
Smokers pay more for life insurance so quitting will save you a pretty penny and improve your health.