Top tips for cheaper life insurance
Compared to many insurance policies, life insurance is actually pretty affordable. However there are still steps you can take to try and keep the price down as much as possible to get a cheaper life insurance policy.
If you’re a smoker, your insurance premiums are very likely to be higher than a non-smoker. Smoking is proven to be a factor in many illnesses such as cancer, heart disease and stroke so an insurance provider would see you as a risk if you are a smoker. Before taking out life insurance why not consider quitting – although you’d probably need to be smoke-free for around 12-24 months before you get the cheaper life insurance.
Keep your BMI down
Obesity is another factor that can also lead to life-threatening illnesses so if you are overweight, you can expect to pay more for your life insurance premium. If you are within the healthy BMI range of 18.5 – 25 then you shouldn’t pay any more for your premium based on your weight.
Wear a fitness tracker
How healthy you are is a big factor in calculating your life insurance premium. You’ll be expected to answer a number of questions about your health when you apply for life insurance but this won’t always give a clear idea of how you maintain your health and fitness levels.
Some insurance companies are using the latest technology to help their customers maintain a healthy lifestyle whilst keeping their premiums low. It’s a little bit like the black box technology that car insurance companies use. By wearing a fitness tracker which sends the data to the insurer, they can keep an eye on your exercise activity, and can offer incentives to those who earn the most points.
If you’re a fan of the ski slopes or you enjoy other adrenaline-packed extreme sports, then you may feel the hit when it comes to paying for your life insurance. Whilst you may enjoy the thrill of throwing yourself off the side of the mountain, your insurer is much more risk-averse and will likely adjust your premium to reflect this! If you want cheaper life insurance then it may be wise to consider some more sedate activities in your leisure time.
Only get the cover you need
Whilst it’s wise to get sufficient life insurance cover to make sure that your family are fully protected, many people often over-insure and therefore end up paying higher premiums for cover that they don’t really need. Work out exactly how much you’ll need – and how long for – this should save you money in the long run.
As with any financial products, it generally pays to shop around to make sure you are getting the best deal. You don’t have to sign up to the first policy you find and you certainly don’t have to stick with it forever. You can review your life insurance on an annual basis to make sure that your cover is still right for you or to see if any other companies can offer you a better deal.
So Smart Money are experts when it comes to insurance. Trained specialists have access to the UK’s leading providers and using their knowledge and skills will place you with the most suitable lender and product for your needs.
The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of SO Media.