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Your life is valuable, right?! Yet despite this I know numerous people that choose not to have life insurance. Time and time again I remind people that you don’t want to leave your loved one with nothing if you die. The reason I do this is that I’ve struggled to get life insurance for myself.
This means I want to have savings in the bank, and my husband to be financially stable. All to often I see people who’d rather have a nice car than have a secure future for their children.
Life insurance can be cheaper than £10 a month, you can’t even buy a takeaway for that! Today I want to talk to you about how to save money on life insurance.
Save money on life insurance
This is an obvious one really but being healthy can save money on life insurance. Lose weight or stay in shape. Keep your blood pressure at a steady level by exercising regularly. When you apply for life insurance they will want to know your weight.
As a life insurance company may want you to have a medical (although rare when you’re young) they may double check the validity of this. Being in optimum shape is a good indicator for an insurer that you take your health seriously.
If you are overweight then consider working on losing weight and then re-apply to see if you can get a better deal. Also, if you’re a smoker then give up! Being an ex-smoker versus smoking will help you save money on life insurance.
Be realistic about what you need
It can be tempting to apply for £100,000s but maybe your family don’t need this. For my family we would be able to live comfortably on £100,000 – £150,000.
This would buy a reasonable sized family home and keep us mortgage free. For your family you may want to leave a better quality of life behind if you pass away.
Be realistic about the amount of cover that you need. Think about your mortgage, any savings and what losing your salary would do to your family.
Also, look at the different types of cover on offer. You may want a whole of life policy or you may want a term one.
Term policies, as an example, may last for 20- 25 years. You can opt for a fixed payment throughout this term for a fixed amount.
For us my husband is covered for 25 years for less than £3,000. This is a great investment for the financial security of our family. If we get to the end of the 25 years without needing to use the policy then happy days!
Look at your employee benefits
A number of employers in the UK offer ‘death in service’ benefits. This is where your family would receive a cash lump sum if you die while employed.
It is worth looking at the benefits that your employer provides and if you need to do anything to make any policy valid.
The younger you buy the better
Obviously as you age you become more high risk for sudden death. Life insurance companies know this and therefore the younger you purchase life insurance the better!
My husband purchased in his early 20s and the rates were very, very low, even compared to now at 30!
Consider a joint policy
If you and your partner both require life insurance then consider a joint policy. Having two people listed on one life insurance policy can be a way to save money.
The savings may only be a couple of pounds per month but this will soon add up over the life of the policy!
I feel that life insurance is really important. It helps to ensure that financial future for your family should you have an accident or die suddenly. Also, you can add terminal illness cover to your policy. This means if you are diagnosed with a terminal illness that you could receive the lump sum early.
This would give you money to be able to take care of creating final memories with your family. I hope that these tips to save money on life insurance have been helpful.
A money coach can give you some help finding out more about what policies would suit you.