If you have a family, one of the best ways you can ensure their wellbeing in the future is to sign up for a life insurance plan. In the event of an illness or sudden death in your family, you can still protect their financial future even if you’re no longer around.
However, as with other necessities, the cost of life insurance premiums can accumulate. Believe it or not, there is such a thing as too much insurance, as Applewood Independent will tell you. When getting an insurance plan, it is important to know how much you really need and how you can avoid extra coverage.
So, to help you out, here are five sure-fire ways in which you can reduce your life insurance premiums.
- Stop smoking
Premiums are decided based on a number of factors, and insurance companies typically consider the policyholder’s age, sex, health status, risk factors and personal medical history. Being a smoker will greatly increase your premiums compared to people who are non-smokers. They could be higher by as much as 40 to 100 per cent because smoking is a detrimental habit that can seriously affect your health.
If you want to be insured as a non-smoker, you’ll have to go up to 12 months without smoking any kind of tobacco products like cigars and cigarettes, and this includes using patches and gums that have nicotine in them.
One thing you must not do is lie to your insurer about your smoking habit. If you get ill or die from a smoking-related illness, your plan will be voided out and you or your beneficiaries won’t be able to take advantage of the benefits.
- Re-qualify for a new plan instead of renewing
For many people, it’s common practice to renew their plan when it expires or reaches the end of its term. At that point, your premium will automatically increase because you’re now older compared to when you first signed up for the plan. Policy prices change over time based on the ultimate mortality table of the insurance company.
However, there’s a way you can get around that, and it’s by signing up for an entirely new policy. This way, you might be able to qualify for a cheaper premium, especially if you’re still as healthy as you used to be, generally speaking.
- Take advantage of joint life insurance
If you’re married or in a common law relationship with your partner, taking out a joint policy might be more advantageous for both of you. There are two types of joint policies: “joint first-to-die” and “joint last-to-die”. In the former, the payout goes to the surviving spouse after the first one dies; in the latter, the benefit is paid out to the heirs after both partners die.
Joint policies also offer one unique benefit: in the event that one spouse is uninsurable for some reason, they can still enjoy some form of coverage under those kinds of plans.
- Shop around for the best rates
Unlike other forms of insurance, life insurance rates don’t vary as much among different companies. However, you can still get a good deal by shopping around for the policy that best suits your needs.
Your best option would be to get in touch with Applewood Independent. They can talk to you about your options and help you find the plan that is most suitable for you and your circumstances. If you’re someone with specific medical conditions or if you have a hazardous occupation, a broker can guide you in finding the policy that’s most fitting to your circumstances and budget.
- Keep a healthy lifestyle
You’re probably already aware that the condition of your health plays into how much you’re obliged to pay for your monthly premiums. When you apply for a plan, the representative from your insurance company will ask you questions about your weight, lifestyle and any other underlying conditions you might have, such as high cholesterol, high blood pressure, a heart ailment, etc.
If you suffer from any of these conditions or have excessive weight, lower premiums might just be the stimulus you need to start living a healthier lifestyle.
Life insurance is an asset that can help you reduce the financial risks due to death. On the other hand, it can also be a way for you to diversify your investments in order to create funds for those times in our lives when we are hit by unavoidable liabilities, such as death or accidents resulting in disability.
To maximise the value of your policy and minimise its costs, life insurance plans must be reviewed and monitored regularly, just like any other type of dynamic investment.
For any further information on how find new ways to reduce the financial risks of death or diversifying your investments, feel free to email firstname.lastname@example.org
Cavendish Online is an e-commerce company and online life insurance service that provides its clients with the best value policies and insurance products while keeping in mind the specific needs of each client. It has been actively operating since 2000.
The views expressed in this article are those of the author and do not constitute financial advice. Applewood Independent Ltd is authorised and regulated by the Financial Conduct Authority. For financial advice designed for you and your specific circumstances, please contact the author using the contact details provided in this article or, alternatively, contact the Applewood Independent Ltd office on 01270 626555.
The value of an investment can go down as well as up. Past performance is not a guide to future performance.
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