As with any type of cover, there is no need to accept the first life insurance quote you are presented with - and there are several ways to reduce the size of your monthly premiums.
Numerous factors dictate the cost of life insurance, and understanding these factors will give you a good idea of how you might be able to save.
Compare life insurance quotes from different providers
The simplest way to cut the cost of your life insurance premium is to get quotes from as wide a range of providers as possible. Confused.com takes all the effort out of shopping around - and we can help you the cheapest life insurance quote in just a few minutes.
Our service allows you to tailor your life insurance policy so you’re getting the cover you need, without being faced with premiums that you simply can not afford.
If you’re taking out a mortgage, your lender or mortgage adviser will often try to sell you life insurance alongside the loan. Life cover makes sense if you’re taking on a major financial commitment like this, but you are not duty-bound to accept the deal your bank is offering. Bear in mind that it is very unlikely to be the best-value policy available.
Limit your cover
Signing up for cover which decreases year by year (known as decreasing-term insurance) will make your premiums lower than insurance at a fixed rate (level-term insurance). And limiting your policy to 20 or 25 years, for example, can also help you save. But these tactics shouldn’t be viewed as an attempt to cut corners - they make perfect sense in many cases.
Life insurance policies are often set up to cover commitments such as a mortgage or raising a family. But these commitments change over time: the amount you owe on your mortgage will fall as you pay it off, and your children will grow up and leave home eventually - both these factors mean that your need for insurance falls.
Some cover is better than nothing
Even if you can’t afford to cover your whole mortgage, or your annual income, it’s a good idea to get at least some life insurance if you have others depending on you for financial support. Work out how much you can realistically afford to spend every month on premiums, and see which insurer will give you the greatest amount of cover. Remember you can always increase your cover as your financial circumstances improve.
Separate quotes for couples
If you’re buying insurance as a couple, you may be able to save money by taking out two separate policies rather than a single joint-life policy.
If you buy a joint-life policy, which pays out the sum insured when the first partner dies, you are effectively insuring both partners for the same amount. But it may be more appropriate to sign up for differing levels of cover, to reflect differences in income, for example. When you compare life insurance prices, get quotes for joint as well as separate policies to see which option works out as better value.
Your health and lifestyle affects your premiums. It may not be possible to improve your health overnight, but lifestyle changes such as losing weight or giving up smoking can eventually lead to lower premiums. Some insurers will require you to have given up smoking for a number of years before they will cut premiums, but it may be worth trying to get a new quote or negotiating with your insurer if you do make changes such as this.