Life Insurance – How to pay less
There is no doubt that purchasing a Life Insurance policy can be an extremely smart move. In fact, in many cases the pay out from a Life Insurance policy can keep a loved one or even an entire family financially afloat at the most difficult time in their lives.
However, at a time when making ends meet isn’t always easy, keeping your monthly outgoings down is a must. So there is no doubt that obtaining the right cover for the lowest possible monthly premium has to be your ultimate goal when it comes to your Insurance policies.
With this in mind, if you want to save money on your Life Insurance premium then you need to understand exactly what affects it….
The amount of cover you take out will have a dramatic effect on your monthly premium. The more cover you ask for, the more it will cost you. Also, the term or length of the policy will have an impact on your premium. The longer your cover runs for, the more likely it is that the Insurance provider will need to pay out. Therefore, the longer the term of your policy, the more expensive the premium you will pay.
Also, remember that level life cover will cost more than reducing life cover.
It is true to say that to some extent Life is a lottery and nobody can know exactly what the future holds. However, when it comes to Insurance, your Insurance provider will use probabilities to work out the risk of insuring you. In short, the higher the risk that the policy will need to pay out, the more it will cost you. The way in which you look after yourself physically, the medical conditions you have suffered from in the past, the activities you take part in and your occupation allow your Insurance provider to work out the risk of insuring you.
Different Insurance providers will have different underwriting criteria and will therefore respond differently to you personal circumstances. Where one provider may increase your premium after having considered your application, another may not. If you are concerned about any of the above, talk to Your Broker, IFA or Insurance Providers before committing yourself.
Like any kind of financial product, the cost of your Life Insurance will be different depending on which Insurance Broker, IFA or Insurance provider you purchase it through. The trick here is to shop around and make sure you compare policies on a like for like basis to get a true comparison
Find an Independent financial adviser with IFACompare. Use our unique search facility for free to compare IFA’s at a glance and find an IFA to give you the independent financial advice. You can also use our tools and guide to help with your finances