While it’s generally not recommended to choose your life insurance policy based on cost alone, that doesn’t mean you should pay more than you have to. You can find life insurance that offers you the cover you need, while still saving you money. Here are our top six ways to save money on life insurance.
Work out what you need
The first step to saving money on life insurance is knowing how much cover you need. Working out how much you need isn’t always easy, however if you use a life insurance calculator or speak to a life insurance expert, you should be able to get a good idea.
Take into account your income and who relies on it, how much your household outgoings are, and how much your beneficiaries would need to carry on as normal. Even if you are not the primary income earner, or if you are a stay-at-home-parent, think about the monetary value of the work you do at home, and don’t underestimate your worth.
Research your options
In order to get the best deal – and the best cover – you will need to research your options. Check out a few comparison sites and insurance providers’ websites and compare what each policy has to offer. Compare prices, read the terms and conditions, and make sure you get the best deal on the cover you receive.
If you buy life insurance online, you may be offered a discount by the insurer. Doing business online is often much more cost-effective than bricks and mortar stores for most organizations. Some businesses will offer discounts for people who buy online, so check out your options and find the cheapest way to buy.
You may also find that some insurers offer a percentage of your premiums as cash back every few years, which can also save you money.
Choose your payment method
Some life insurance providers offer different ways for their members to pay their premiums. If you are offered the option of paying annually or monthly, check whether you can save money paying annually. While it can be a significant upfront payment, paying your premiums annually may save you money, and it also means you don’t have to worry about paying your premiums throughout the year.
Get a rider
A rider is an additional feature that can be used to personalize a life insurance policy. The riders available will depend on the insurer and the policy, and by adding a rider, you will usually push up the price of your premiums. While this may not sound like a great way to save money, if you choose the right rider, it may save you money in the long run.
Only buy what you need
There’s no point paying for something you don’t need. Don’t be persuaded to buy more life insurance than you need, as it will end up costing you more than necessary. Get independent advice to work out how much cover is right for you to find the perfect life insurance