Life insurance is a consideration for people who have family they provide for. Depending on the age of the person and the state of their health, the premium of the policy will always be different. However, there are some things you can do to lower the premium and save yourself some money. Here we have some top tips to help you!
Level term life insurance is one of the cheapest ways to provide for your family if the worst should happen. It might have a fancy name, but it’s one of the simplest forms of life insurance out there today. Basically, it pays out a level amount to your dependants if you die within a fixed term. This means you only get a payout if you die within a fixed term, e.g, 20 years. This also means that the payment stays the same, and never varies.
If you’ve made the decision that you definitely want life insurance, you need to make sure that you get the right type of policy along with the right amount of cover. Here are our top tips for doing just that:
In most cases with level term insurance, the cheaper the better. This probably goes against all of your current beliefs, but it makes sense in this case as there is no investment element; the payout always stays the same. Brokers will take a look at every policy possible and find the lowest priced policy suited to you. You could even save more money by going to execution only brokers who allow you to pay a small fee upfront and then give you the commission.
Some companies will try to convince you to buy add ons, but this will push up the price of your insurance and you probably don’t even need them. You might get offered a critical illness option, which pays out if you come down with a terminal illness like cancer or heart disease. It’s cheaper to add it on to your policy than buy it separately, but it will still cost you. Claybrook Life are a trustworthy company, start with them.
Just like car insurance, it could be cheaper if you choose to pay your premium annually rather than monthly. You should also ask your insurer to write your life policy in a trust, which will mean a quicker payout for your family.
Life insurance doesn’t have to cost you an arm and a leg. You can save loads of money by simply following the tips above. The main things to remember are not to over/under insure yourself, and to choose the kind of policy best suited to your unique situation!