When you feel you are in a position to start applying for life insurance, don’t take the first policy you see. Though many are tempted to take out their life insurance with the same provider as they use for their car insurance or mortgage, this may not prove to be the most economical route.
For the easiest way to compare life insurance cover, use an independent online comparison website like www.friendlyfinance.co.uk which will give you a range of options quickly and easily, without you having to spend hours trudging around the streets or making lots of phone calls.
When evaluating the policies, make sure that you compare like for like. It may be possible to find significantly cheaper protection but only select a product that is going to provide you with the cover that you need.
2. Only Pay for What You Need
As with many purchases, with life insurance you get what you pay for. The more complex or specialised your policy, the more it is likely to cost. So opt for a basic, standard policy wherever possible that only covers the elements you are looking for. Additional protection for extreme sports is going to add nothing to the life policy of a bird watcher, but it could cost significantly more.
3. Choose Life!
As corny as it sounds, one of the best ways to reduce your life insurance premiums is to choose a healthier lifestyle. By keeping yourself fit and healthy you can actually reduce the level of risk that you pose to an insurance provider who should then reduce your premiums accordingly.
For example, if you are a smoker then you will pay significantly more for your cover as you pose a much greater risk to the insurance provider. This is due to the fact that using tobacco products can have a serious effect on your health and lifespan. In the UK alone more than 114,000 people die each year due to smoking related illnesses (source: NHS Choices)
However, if you become a non-smoker for more than a year (using no tobacco products what so ever including nicotine patches), you could effectively reduce your monthly premiums by up to 50% on some policies. And if you are a non-smoker before you take up your policy, this will provide you with access to much cheaper cover.
Reducing the amount of alcohol you consume, avoiding risky lifestyle choices and ensuring your weight is within recommended limits can also make a considerable impact on the cost of your life cover premiums.
4. Keep It Simple
Policies that are tailored to specific age groups or lifestyle choices are also usually more expensive. Wherever possible opt for the standard policy and only move to more specialised cover when you cannot find a standard alternative.
5. Start As Soon As You Can
The cost of monthly life insurance cover policies can vary depending on your age when you take up a new policy. By taking cover when you are younger, you can reduce the cost of your monthly premiums and ensure that you get the best possible protection for the lowest amount of money.
6. Say ‘Yes’
When it comes to life insurance, many people would rather pay higher premiums than agree to a simple insurance medical. Though many assume such a procedure would be lengthy and intrusive, most people who undergo an insurance medical simply have a quick health check with a professional and then answer a list of questions. By saying ‘yes’ when you are asked to have an insurance medical, you can further reduce your life insurance cover premiums and also get a quick once over at the same time