How To Save On Your Life Insurance
With rising costs for housing, utilities and basic living expenses, there are sensible ways to cut costs on your life insurance premiums. Consider these ways to save money on your life cover so you have more in your pocket:
1. Choose a guaranteed term life insurance policy over reviewable cover.
Although the initial premiums may be higher for guaranteed term life insurance,
it will pay a guaranteed sum assured for the same premium throughout the
term of the policy. A reviewable life insurance policy gives the insurer
the option to review the coverage and charge additional premiums. The
insurer will usually review the policy every two to five years and increase
your premiums, which can add up over the term of the policy.
2. An excellent freebie is having your life insurance “Written in
Trust” so that in the event of the claim, the money goes immediately
and directly to the beneficiaries without having to pay Inheritance Tax
for an up to 40 percent savings.
3. Be careful of taking out a joint policy on a first death basis because
the policy will only pay on the death of the first policyholder, which
could leave the second policyholder older and uninsured.
4. Purchase life insurance when you are young at a guaranteed rate. As
you get older, life insurance gets more expensive. Get as much protection
as possible while the rates are the lowest.
5. As simple as it may sound, purchase the right amount of coverage. By
just buying what you need, you can save significantly on your life insurance
premiums. Determine how much cover is necessary to take care of your dependents
in the event of your death to decide how much to buy.
By carefully considering the terms and coverage of your life insurance
policy, you can save significantly.