5 tips for getting cheap life insurance

One of the many realities in life is that death is unpredictable, not to mention unavoidable. While we can’t prevent death, there is one sure way to plan for it, by taking out life insurance cover. 

A common perception is that life insurance can be expensive, however, cheap life insurance is easier to get than you might first think. In this article, we’re going to take a look at 5 ways in which you can get a cheap life insurance policy.

Why buy a life insurance policy?

When we pass away, the last thing any of us wants is to leave our family with any financial burdens they may struggle to pay off. That’s why life insurance is one of the best ways of providing financial security for our loved ones. 

When you die, your insurer pays out a lump sum (Typically a fixed amount) to your family, to support them during this difficult time. 

Once you take out cover you will need to make monthly payments to your insurer. You must keep up with these payments, otherwise, your cover will be voided.

The payout from a life insurance policy can provide your family with financial  support to help pay towards:

  • Daily living expenses
  • Household bills
  • Covering a mortgage
  • Outstanding debts
  • Funeral costs

The types of life insurance

With life insurance, there are two main types of cover – whole life insurance & term life insurance. These policy types differ in terms of length and cost.

As the name would suggest, Whole life insurance (also known as ‘life assurance’)  ensures you are protected for the remainder of your life. The cost of your premiums and eventual pay-out amount are both fixed throughout the policy.

As this type of policy provides permanent cover, your loved ones receive a pay-out no matter when you die. Because of this, whole life insurance is generally more expensive than term life insurance.

As one of the cheapest forms of life cover, term life insurance provides cover for a set period (i.e 30 years) known as the ‘policy term’. 

Your loved ones will only receive a payout if you die during the term. Once the term ends, your policy expires meaning you will need to take out further cover if required.

Term life insurance comes in 3 forms:

    • Balanced cover – The standard form of term life insurance, your premiums and pay-out amount remains the same throughout the policy.
    • Decreasing cover (also known as mortgage life insurance) This is designed to cover large payments such as a mortgage. The eventual payout decreases over time as you pay off the outstanding balance on your debt.
  • Increasing cover – The pay-out increases overtime to protect the value from inflation. Because of this, your premiums also increase over time. 

How can I get a cheap life insurance policy?

  1. Get cover when you are young – As you get older not does your life expectancy reduce, there is also a greater chance of developing health conditions. 

Because of this, as you get older the cost of life insurance increases significantly. Therefore, it’s best to take out cover at a young age to save money in the long run.

  • Stop smoking – Not only is smoking damaging to your health, but it also raises the cost of your cover. Depending on your provider, they may reduce the cost of your premiums as a way to get you to quit smoking.
  1. Buy a term life policy If you’re looking for a cheaper alternative to whole life insurance then a term life policy could be your best option. Ultimately this depends on whether your family’s needs short or long term cover.
  2. Shop around for the best quotes – 
  3. Get joint cover – Joint life insurance is a popular choice amongst couples, providing cover for two people under one policy. It can work out both cheaper and easier to manage than two individual policies.

How much is life insurance?

There are a number of factors that determine the cost of your life insurance policy. When you apply for cover, your provider will ask you some basic health & lifestyle questions to learn about your:

  • Age
  • Health
  • Occupation
  • The type of cover you want
  • The length of cover you want

It’s important to answer these questions as accurately as possible otherwise your premiums could be increased. Now that you know how to get cheap life insurance, why not get cover, today!