Life Insurance - Money Saving Tips for Life Insurance

 
 
 

Life insurance is important and the last thing you want to do is cut corners in order to save a few pounds, but that doesn’t mean there aren’t cost saving actions you can take that will save you a small fortune.

How much do you really need?
Dependants?
Life insurance/assurance
Don’t Smoke
Switch!
Taxation

How much do you really need?

All good things should go hand in hand with moderation. Insuring yourself against injury or even death is great, but how much cover will you really need. Top

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Dependants?

Possibly the greatest reason to have any form of life insurance is to protect the ones you love from any burden they might inherit if you became ill or died. If you do have any dependants, then critical illness cover and income protection insurance is a great idea. If you don’t, then you may want to consider scaling back. Top

Life insurance/assurance

Insurance protects you from something that may happen, assurance protects you for something that will happen. Life assurance, often referred to as ‘insurance’, is a payout when your death occurs. It is important to keep in mind that the higher the payout you want then the greater the cost of your monthly premium will be. When applying for a loan, consider how much money your loved ones will really need when you die.

It may also be a good idea to ask for enough to pay off your mortgage, if you have one, out right to save money on interest rates and enough to cover your monthly income for a period of time. 

You should also be weary of taking out a policy as a couple. Always compare the premiums on different policies as you might save money by taking out two individual policies.

When you finally decide on a policy you will be asked to set the term of the cover. The term determines how long you are covered for and is a very important decision to make, if you die after the term has expired you get nothing. The term, however, also determines how much your monthly premium will be so shortening the term can make you massive savings. Top

Don’t Smoke

Many insurers will offer you a non-smoker’s bonus which can shave off a lot of money from your premium. You qualify as a non-smoker if you’ve given up for at least a year, so smokers may want to switch to nicotine gum as the savings are substantial. Top

Switch!

Have you already got cover? Then look into switching insurers, you should take advantage of the premiums and cover available in our competitive market. To search through over 95% of the market and save yourself money use our search engine. Top

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Taxation

Death and taxes are often referred to as the only two sure things in the world. While your death may be inevitable this doesn’t need to be the case with taxes. Consider writing your policy into a trust which pays out directly to your dependants and never becomes a part of your estate, safeguarding it from inheritance tax.

This does, however, carry with it a downside. Trusts can be very difficult to alter even with the consent of everyone involved. If you are likely to change who you would like to receive money when you die then you may be better off taking out a standard policy. Top


 
     
 
 
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Only Insurance Ltd is authorised and regulated by the Financial Services Authority, FSA registration number: 313649. Our registered offices are 1 Kings Avenue, Winchmore Hill, London N21 3NA, company number: 05223009. Telephone 0207 377 1805.