How to save money on life insurance

With the average person spending £30 per month [https://yulife.com/average-cost-life-insurance-uk/] on life insurance cover, there are a number of ways to save money and get the best deal possible. If you follow these tips below, you could potentially save hundreds or thousands of pounds over your lifetime. • Understand your requirements • Shop around online • Select the right policy and term • Consider switching life insurers regularly • Avoid using a financial advisor to purchase life cove

Yugi the Giraffe - 3 June 2019

With the average person spending £30 per month on life insurance cover, there are a number of ways to save money and get the best deal possible.

If you follow these tips below, you could potentially save hundreds or thousands of pounds over your lifetime.

• Understand your requirements
• Shop around online
• Select the right policy and term
• Consider switching life insurers regularly
• Avoid using a financial advisor to purchase life cover
• Get joint cover with a family member or spouse
• Stop smoking
• Stay fit and healthy

Understand your requirements

Rather than just buying life insurance for the sake of it, it is important to consider various options and requirements based on your age and income.

Young, single and no mortgage - you may only need a very basic policy and this could only cost you a few pounds.

Middle-aged with children, school fees and a mortgage - you may require more cover in order to support your family if you are no longer able to.

Aged 65+, no mortgage or children to support – you may not require a lot of cover, since you have much fewer things to pay for and support financially.

Shop around online

The average search for life insurance starts with a Google search and using price comparison sites can be useful to get an idea of monthly costs and premiums.

It is essential to shop around and look at a number of quotes and also use the options to select different terms and types of life insurance – since you may find that some are better value and are more affordable.

Select the right type of policy and term

There are a number of different types of life insurance and the one you choose will have an impact on price and the money you can save.

A decreasing term life insurance policy could be cost-effective if you have a repayment mortgage and children to support, but this will be cheaper long-term when you no longer have to support them.

For someone young, you may prefer level term life insurance for a period of 10, 20 or 30 years and this may be more cost-effective than committing to something long-term.

Consider switching life insurers regularly

You are not legally bound to one insurer for the rest of your life and when your year comes up for renewal, it is worth looking around at other insurers and seeing what other quotes you can get.

Certainly, if your life circumstances have changed and you have lost weight or have quit smoking, these things will help you save money.

Avoid going through a financial advisor

It is common to use a financial advisor to manage your finances, savings and personal insurance, however, it is noted that you may be paying a slight premium if you use a financial advisor to purchase life insurance, rather than going directly.

This may include an up-sells like critical illness cover and terminal illness cover, which may be necessary or not, or even cheaper elsewhere.

Get joint cover

If you have a spouse or live with close family and friends, consider getting a joint policy which is typically cheaper because you are getting a bit of a group discount. (see group life insurance)

Joint cover works on a first-to-die basis, and whichever partner dies first will be covered by the policy and the other party will receive payment, even though they will typically need a new policy once this ends.

Stop smoking

You can save 33% to 50% on your life insurance policy if you quit smoking and maintain this for the last 12 months.

Smokers are considered to be much higher risk of contract illness and disease and this will shorten life expectancy.

Anyone who has smoked in the last 12 months is considered a smoker, and this includes cigars and vaping.

Stay fit and healthy

Being fit, healthy and at a recommended weight will lower your risk of health problems including heart, lung and diabetes.

If you remain fit or lose weight over the course of a year, you are in a good position to bargain with your life insurer and command a lower premium.

Yugi the Giraffe

Yugi is our YuLife mascot. Like all giraffes they've got a big heart – in fact the biggest heart of all land animals.