Getting cheaper life insurance doesn't have to be rocket science

Buying life insurance in a time of austerity can feel like a luxury that you can do without; however a difficult economy actually makes it more important to take out appropriate cover. When times are tough your dependents would find it even harder to cope financially if you we're suddenly no longer around to provide for them. All is not lost though, there are ways to get covered and keep the premiums to an absolute minimum.

Choose Term Life Insurance

Instead of taking out a whole of life insurance policy that pays out if you do not claim, choose term life insurance which is significantly cheaper. Even if you pay the same premium amount you will get many times more cover.

Lower The Payout Amount

Reducing the amount that the policy will pay out will lower the cost of the policy. Work out your numbers to that you know the minimum amount of cover you require, and then choose that figure. You could also choose reducing term life insurance where the amount that the policy pays out reduces over time and this lowers the cost again.

Reduce The Term

The length of time the cover lasts will partially dictate the cost of the premiums. Consider a shorter policy and that could reduce your premiums. Perhaps you just need the policy to cover the length of time remaining on your mortgage?

Do Not Buy Extras

Extras such as waiver premiums or critical illness cover will cost more, and at a push perhaps you could do without them.

Shop Around

Make sure you make different insurers compete for your business. Speak to an independent broker who will give you the best prices, often discounted below the price your bank or IFA would quote.

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