If you’re shopping around for a policy, now is the time to make sure you’re not paying more than you should.
Our lucky seven tips for life could save you a few quid on the cost of your peace of mind.
1. Given up smoking?
After just 12 months of not having had any nicotine-containing products you are eligible to apply for non-smoking rates. This could mean a fair saving on your premium as prices for non-smokers can be up to 50 per cent cheaper.
2. Shop around
Even if you’re not buying your first life insurance policy it’s important to check periodically how much you’re paying and whether you can get a better deal elsewhere.
If you bought your policy alongside a mortgage or through a bank or building society, check your bank statement and remind yourself how much you’re paying.
Many of the UK’s banks and building societies are tied to just one single life insurance provider which can be more expensive than if you were to source your policy through a comparison site such as Confused.com where you have a greater choice of providers.
3. Pay annually instead of monthly
You can claim up to a five per cent discount for paying annually. So providing you can save the total premium cost over the year, you’ll be quids in.
4. Get healthy
Factors such as your body mass index, smoking status and how much alcohol you consume all play a part in calculating how much you pay for life insurance. So the healthier you are, the lower your premium when you apply.
5. Put your policy in trust
Putting your life insurance policy in trust means that you ring-fence the cover outside the rest of your assets.
This can help your family avoid paying potential future tax charges such as inheritance tax and cuts red tape, ensuring your policy pays out a quickly as possible.
Read more about putting your policy in trust.
6. Don’t procrastinate
If you know you have a need for life insurance, get it sorted sooner rather than later. Premiums rise sharply with age and usually increase every six months.
7. Read the small print
If you already have a policy, you may have an option in it called a Guaranteed Insurability Option, which can allow you to increase your cover (within certain criteria) without going through the medical underwriting process again.
This option can be particularly valuable if you’ve been diagnosed with a medical condition or taken up smoking since buying the policy originally.
Having trouble working out how much life cover you will need? Our life insurance calculator could help you out:
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