A common worry about life insurance is the extra cost. If you are looking to set up either a new policy or get a better deal on your existing one it is worth noting that, according to research from Sainsbury’s, the average cost of life insurance has fallen for the second year in a row. This research suggests that the average life insurance premium has decreased – regardless of factors such as gender or if you are a tobacco user. In a world where the cost of living seems to be increasingly more expensive this is welcome news, as life insurance can provide peace of mind and could prove invaluable to your family if the worst should happen.
Once you have decided on the type of cover you want, or what changes you want to make to an existing policy, it is highly likely that you will get a better price for you premium online. Buying online can give you a better deal as online brokers often pay back a percentage of the commission received from insurers. Also, there are a few things to bear in mind that could help you get a better deal on life cover…
The first thing that is smoking; if you use tobacco the premiums will inevitably be higher. If you give up smoking the premiums will reduce – perhaps not immediately but almost certainly after 12 months of being smoke-free and informing your insurance broker about it.
Another tip for getting a better deal is to consider a decreasing-term policy; suitable if you want to cover a debt which will decrease over time (for instance a repayment mortgage). Premiums for this type of policy are normally considerably cheaper than level-term cover. (This is because the amount insured reduces over time as you pay off the capital).
To get a better deal for your family in the bigger picture another idea is to write your life insurance policy in trust. Although this won’t see you get a better deal immediately it might save your family a significant amount of money in inheritance tax. This is because if the policy is placed in trust the insurance money payed out on death sits outside your estate, so isn’t subject to inheritance tax – up to 40%.
To conclude, you might be able to get a better deal on life insurance than you thought; bearing in mind the new pattern of falling premium prices, whether you would consider a different type of policy, and if you are either a non-smoker or an ex-smoker. So click for a free, no obligation quote to see what deal you can find.