5 tips for finding cheap life insurance cover

Do you need help in finding cheap life insurance cover?

Finding affordable cover can be a challenge, but it’s not impossible.

With the right knowledge and strategies, you can secure a policy that fits your budget and provides the protection needed.

finding cheap life insurance cover

Why do you need life insurance?

It’s not at the top of everyone’s list, but life insurance cover is really something worth considering.

It can provide financial support for your family in the event of death, helping with any debts or expenses left with them.

You can also use it to leave a financial legacy for your loved ones.

Whether it’s leaving an inheritance, or to support your business, having cover can help you leave a lasting impact.

How much does life insurance cost?

The cost of life insurance is determined by several factors, including:

  • Age
  • Health, including family medical history
  • Lifestyle choices, such as smoking
  • The type of policy you choose
  • The amount of cover you need

Generally, young people tend to pay lower premiums compared to older people.

This is because they’re considered at a lower risk of passing away during the policy term.

Here are a few ways you can save money on cover:

1. Shop around and compare quotes

One of the most effective ways to find cheap life insurance is to compare quotes from different providers.

Take the time to research and get quotes from multiple companies to ensure you are getting the best possible rate.

Online comparison tools can make comparing quotes an easy process.

2. Consider term life insurance

For cheaper premiums, consider opting for term life insurance instead of whole life insurance.

This type of policy lasts for a set amount of time, as agreed upon by you and your insurer.

It is usually cheaper than whole life cover, as the policy doesn’t offer a cash value or other benefits.

There are three levels of term cover to choose from:

  • Level term – the same amount of cover throughout the policy term.
  • Decreasing term – cover reduces over time, usually in line with a mortgage or loan repayment.
  • Increasing term – cover increases overtime to keep up with inflation. Premiums also increase.

Once you die, the policy pays out a cash lump sum to your family.

This, however, will only occur if you die during the term. If not, the policy expires and your family will get nothing.

Another option is whole life insurance, which lasts for your entire life as long as you pay the premiums.

As this type of policy provides permanent cover, it’s usually more expensive than term.

Like level term, both the premiums and payout value stay the same during the policy.

3. Maintain a healthy lifestyle

Insurance companies often consider your health when determining life insurance rates.

Smoking can be a red flag for insurers because of the long-term health risks it can cause.

Even if you do smoke, you can still get cover, but the premiums will cost more as a result.

Insurers will usually ask some basic medical questions, such as whether you have any medical conditions or take any medications.

Being honest about your health is important, as lying can invalidate the policy.

In some cases, they may also require you to undergo a medical exam before providing a quote.

4. Choose the right amount of cover

When selecting a life insurance policy, it’s important to choose the right amount of cover for your needs.

Opting for a lower amount of cover can help you save on premiums.

Ideally, you want a policy that can cover various living costs for your loved ones. This could include:

  • Daily living costs like groceries
  • Household bills like utilities
  • Loans and debts like a mortgage or credit card bill
  • Childcare costs like their education

Look at your current income and debts to determine the appropriate amount to provide adequate protection without breaking the bank.

5. Choose an appropriate policy term

The length of your policy term can impact the cost of cover.

If you choose a shorter-term policy, your premiums may be lower than if you opt for a longer-term policy.

Think about how long you need cover to meet your family’s needs.

For example, if you have a mortgage, you want the policy to cover the length of the loan.

Or if you have young children, you may want to be covered until they’re older.

Make sure to review your cover

Your life insurance needs may change over time, so it’s necessary to review your policy.

For instance, if your income increases or you have additional dependents, you may need a higher amount of cover.

Similarly, if you pay off a loan or your children become financially independent, you may want to lower your cover.

Start searching for life insurance online to get the best bang for your buck!