How to: Reduce your life insurance premiums

Life insurance is always a worthwhile investment, but as a long-term payment plan it can also have a considerable effect on your bank balance. So before rushing into a policy, it’s worth taking some time to ensure you’re getting the best value for money on the market. Here are a few handy hints for scoring a lower premium without compromising the quality of your cover.

Compare the market

Insurance premiums and the levels of cover they entail vary considerably from insurer to insurer, so it’s always worth checking out a variety of options before you make your choice. Price comparison websites can be useful in this regard, but remember that not everybody uses them. It might be more useful to compile a list of the leading insurance companies and research which of them can offer you the best value. It’s a little more time consuming, but the savings you could make really do justify the effort.

Look for insurance companies that cater to your needs

Some insurance companies cater specifically to one section of the market, allowing them to negotiate better value for their demographic. For example some companies only offer insurance to the over 50s, while others cater to couples, under 30s and people with health problems. Draw up a list of any factors that may affect your insurance, and then spend some time finding out if any companies offer policies that reflect your needs.

Separate your policies

If you’re part of a couple, and particularly if you’re parents, it might seem to make sense to take out a joint life insurance policy to simplify your affairs. While this is true in some cases, there are downsides to this. Because both partners are insured for the same amount, factors such as differing age, health or income might not be factored in, meaning two individual life insurance policies – possibly even from different insurers – might provide better value.

Keep an eye on inflation

Some insurance providers will automatically raise your premiums to reflect inflation, meaning your ultimate pay-out retains its value. This is obviously a good benefit and something worth looking out for. However if you’re struggling to afford your monthly premiums you might have the option to freeze your increases, either temporarily or permanently, to make it easier to keep up your payments. It isn’t an ideal solution, but it’s preferable to stopping your insurance altogether.

Improve your general health

Some companies will charge a higher monthly premium if you’re in poor health. Losing weight, quitting smoking and taking regular exercise are all ways to improve your general wellbeing that can also pay off financially.

If you have pre-existing health problems, there are some companies, such as RIAS Insurance, that don’t require you to provide medical information, so these might be your best option for affordable cover.

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