The best way to start making savings on your life insurance is by shopping around for a policy, premiums can vary greatly from company to company and also what is excluded from the policy.
Insurance is often confusing and many of the exclusions within policies are hidden, however it essential to know the exclusions before the policy needs to be claimed on, other wise you could have been paying premiums for years and not be able to claim.
A specialist broker can also do this for you.
The amount of insurance you need will have to be taken into account, take too much and you will paying more than you need to, don't cover yourself for enough and your loved ones could lose out when it comes to claiming.
In order to determine the correct amount you should ask yourself how much money would your loved one need in order to cover immediate expenses. Then determine how much income your loved one would need in order to sustain the household. This should give you a good starting point as to how much to insure your life for.
Cutting down on the amount that you smoke, drink and increasing the amount of exercise you do to keep yourself fit and healthy can help to bring down the cost of your insurance. Those who are severely overweight can save themselves money by losing weight.
Certain conditions could mean that you would be better off going with a specialist insurer, as an insurer who specialises in certain conditions could save you money on your premium.
Great savings can be made online so when looking for the best deals in life insurance check out the many online companies, there are many of them and as such online prices are very competitive as they vie for your money.
If you and your partner are both looking to be insured then taking out a combined policy could save you money on individual premium costs.
Whole Life Insurance Premium
Life insurance is cheap for those with good health and low risk lifestyles. But if you don't fall into either of those categories, you can expect to pay anywhere from a few pence to many pounds more per monthly for your premiums. Several factors contribute to the amount you pay-some are factors you can control, and some are not.
The Falling Cost of Life Cover
According to analysis by Life Search, the costs of term assurance have been cut by as much as 50% over the past ten years. For ?100,000 worth of life cover, a 35 year old male non-smoker can expect to pay around ?8 per month, while a female will pay just ?7 per month.
The falling cost of life insurance is due in part to the increased life expectancy of both men and women, with women's higher life expectancies giving them access to slightly lower premiums.
So Why Do Some People Pay More?
General population trends such as the tendency to live longer affect insurance premiums across the board. For individuals, much more specific factors affect the monthly cost of life cover, and even though the cost has decreased in general, certain lifestyle and health factors can increase the costs considerably.
For life insurance companies, determining your premium is about assessing your level of risk and assigning a monthly premium cost to match it. In very general terms, the more likely the insurance company believes you are to die while the policy is in effect, the more they will charge you for insurance. Your age, health and lifestyle all affect how much your premiums cost.
Age and Sex
Men pay slightly more than women due to their lower life expectancy. Life insurance premiums also increase with age so the sooner you get your life cover sorted the less it will cost you.
Health & Medical History
Factors such as hypertension, high cholesterol, obesity, diabetes and smoking all influence how much you pay for life cover. In all cases these conditions translate into a higher level of risk for the insurance company because these conditions reduce life expectancy.
Obesity and smoking in particular are expensive in insurance terms. A 35 year old male smoker will pay around ?13-?15 per month for ?100,000 worth of life cover, and obese people can expect to pay around 50% more for their life insurance.
Your family's medical history, as well as your own health, will play a part in determining your premium costs. If conditions such as heart disease, cancer or diabetes are prevalent in your family your insurance costs will rise, even if you yourself have not developed these diseases.
Occupation and Hobbies
The price of your life cover will be higher if your occupation is risky, or if you have any high-risk hobbies such as mountaineering or motor racing.
Overall
Your unique combination of health and lifestyle factors will determine the price you pay for life insurance premiums. If your lifestyle and occupation are low-risk, your health will be the most important factor that determines how much you pay.
Finally, note that being thoroughly honest about your health and lifestyle is crucial when applying for insurance. While factors such as smoking or a family history of diabetes will increase your costs, false information will invalidate your policy.
Both David Thomson & Chris Johns are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
David Thomson has sinced written about articles on various topics from Finances, Motorola Cell Phone and Mortgage Insurance. David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best deal on their
