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How do I lower my life insurance cost?


Your life insurance policy doesn’t have to cost the earth - here are some simple steps you can take to lower your costs.

mother and daughter and a piggy bank

Get the right amount of cover

People usually get life insurance for several reasons:

  • To cover any outstanding debts when you die.

  • Replacing lost income to provide for your family.

  • To provide a legacy for your loved ones.

  • To cover any funeral costs.

But no matter why you’re getting cover, you need to figure out how much you actually need.

We have a life insurance calculator to help you with that, so you don’t end up paying way too much for a payout that’s far bigger than necessary.

Adjust your cover

umbrella protecting money

A term life insurance policy covers you for a set amount of years, usually between five and 40 but you don’t have to take out the maximum amount of years.

Think about what’s best and adjust accordingly. It could mean it’ll be cheaper.

Find the right kind of cover

There are two common types of term life insurance:

Mortgage life insurance: this policy is meant to pay off your outstanding mortgage in case you die. Since your mortgage will shrink when you’re paying it off, the payout will do so too.

That’s why it’s called decreasing term life insurance and it’s often cheaper than a level term one.

Level term: This is a policy where the payout is set at the start and stays that way. Since these policies last quite a few years, make sure you can afford the monthly payments.

If you’re starting a family, a higher cover might be what you want but once your children fled the nest, you might only need to cover your mortgage.

It’s worth thinking about what you actually need, and tweaking your cover to suit your circumstances.

A whole of life policy works differently as there’s no set amount of years and pays after your death.

Single or joint cover?

If you want to cover you and your partner, a joint policy seems to make sense but it might not actually be the best option.

Joint cover pays out if either you or your partner dies but if for example your salaries differ significantly, the payout might not be quite right.

Since there’s only one payout with a joint cover, it could be better if you take out two single policies so that the payout matches the need.

The best option is to get a quote for both joint and single policies and see which is better.

Get healthy

apple with measuring band around it

And finally, life insurance prices are based on risk. The riskier your lifestyle, the higher the chance of a payout, and the more expensive the policy will be.

So a healthy lifestyle could bring your costs down

Life insurance companies take your family’s medical history into account when working out the cost too.

But making lifestyle changes, like giving up smoking and losing weight could eventually lead to lower fees too. Or you could quit the sky diving hobby and move on from your oil rig job.

It doesn't happen overnight though, some insurers will only class you as a non-smoker after you abstain for at least 12 months which also includes any nicotine products.

If you do feel like your lifestyle has changed then ring your insurer and see if you can negotiate a better price.


Compare life insurance

We compare prices from up to 9 trusted UK insurance providers

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Related guides

Compare life insurance

We compare prices from up to 9 trusted UK insurance providers

Get a quote

Life insurance

Compare life insurance quotes from up to 9 providers

Get a quote