Published by Joe Davine on
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How to keep the cost of life insurance down

Getting life insurance is one of those tasks that’s easy to put off until it becomes a genuine necessity. However, wouldn’t it be better to take control of the situation and look to get the right cover at the best price right now rather than letting the years pass?

Age is one of the most important factors in determining how much your life cover premiums will be, so taking out a policy sooner rather than later will not only give you peace of mind, but also work out cheaper in the long run.

The factors that determine the cost of life insurance

Before you get started, it’s important to know the different things that will have an impact on the cost of your insurance premiums. Insurance companies generally take the following into account:

  • Health. Being in good health when you take out a policy reduces the risk for the insurer, and therefore also the price. If you have a pre-existing condition this doesn’t mean you can’t get a cheap life insurance, but it can limit your options. Have a look at our life insurance with pre-existing conditions guide for more information.
  • Age. Put simply, the older you are when taking out a life cover policy, the more expensive that policy is likely to be. Most term life policies will also have a limit to the age you can be when taking out a policy.
  • Smoking. Given the health risks associated with smoking, being a smoker can increase your insurance premium payments significantly.
  • Location. Where you live can affect your premium payments, but this often depends on the insurance company you are using.
  • Level of cover. The higher the amount of cover a policy provides, the higher the premiums will be. Whether you want to have a very large payout or include extras such as critical illness protection, you need to balance the cover you need against what it will cost in terms of premiums.
  • Duration of policy. If you’re taking out a term life cover policy, the length of the term will have an effect on your premiums. If you want to be covered for a longer period of time, then you are likely to have to pay slightly more every month.

Get a cheap life insurance today

It is no secret that life cover gets more and more expensive as you get older. This means that the longer you put it off the more difficult it is to get a great quote. Every passing year counts if you hope to pick up cheap life insurance.

Then there is also the risk that you suffer some sort of illness before you arrange a policy. This could lead to cover being refused or that specific condition being excluded. It could also see your premiums greatly inflated.

Therefore, it is a good idea to start looking at quotes as soon as you can. As well as a better price you will also get the peace of mind of being covered earlier.

Get several quotes

With so many life insurers in the UK it is no surprise that the prices you are quoted can vary widely. If you accept the very first quote then you might end up regretting it when you later discover that you could have got a better deal.

On the other hand, if you compare a number of life quotes then you will have a far better chance of getting cheap life insurance that suits you in terms of the price on offer.

We make this process easy for you by comparing your cheap life insurance options and reviewing each company. Once you have seen a few quotes you will start to get a good feel for how much you can expect to pay for the level and type of cover you are looking for.

Consider different types of policy

The amount you pay for life cover will largely depend upon the type of policy that you choose. For example, it will add to include critical illness protection in a term life insurance policy (however, most policies will insure you against terminal illness as standard).

The types of policy on offer usually fall into three categories:

  • Level term. These policies cover you for a fixed amount of time (e.g. 30 years). Over the course of this term, both your premiums and level of payout are fixed.
  • Decreasing term. With decreasing term policies, your premiums remain fixed for the term of the insurance, but the size of the payout decreases over time. These policies are useful for covering a debt that reduces over time, such as a mortgage.
  • Over 50s life cover. Designed specifically for over 50s, these are whole-of-life policies (otherwise known as life assurance) with fixed premiums designed to pay out a cash sum when you die to help cover funeral costs or other expenses. Ofen premiums will stop being paid around your 90th birthday, but you remain covered for life.

You will usually find lower premiums if you take out a decreasing rather than a fixed term policy, and if you are over the age of 50 then a special over-50s life plan could be your most affordable option, as age is a big factor in the price of a level or decreasing term policy. Take some time to understand the different kinds of life cover before you decide which one is right for you.

The decision shouldn’t come down solely to price, though. You need to find a cheap life insurance policy that is going to be genuinely useful and provides you with the cover you want. Otherwise, it isn’t giving true value for money and you will probably end up cancelling it early anyway.

Take out the right level of cover

Finally, getting the right level of life cover is crucial. Too high and it will be more expensive, too low and it might not be enough to protect your loved ones financially if the worst were to happen.

You can use an online tool to work out roughly how much you need to be insured for. Once you have done this, it will be a lot easier to look for cheap life insurance that you are completely comfortable with.

By following these simple steps you will feel confident of getting the best value you possibly can.