Save Money on Life Insurance With These Tips
When you’re building a future with your partner or raising a family, financial security is a top priority. Life insurance is one of the best ways to protect your loved ones, but that doesn’t mean you have to overspend.
Whether you’re newly married, growing your family, or planning for the long term, finding affordable coverage is possible with the right strategy. In this article, we’ll share practical tips to help families and couples save money on life insurance, so you can get the protection you need without stretching your budget.
1. Buy cover sooner rather than later
When you buy life insurance, you’re required to pay a premium to your insurer each month. The cost of your premiums will take into account factors such as your age, health and the amount of cover you select, among other things. In this case, it may work out cheaper to buy cover early when premiums are lower.
Certain policies, like whole life insurance and level term life insurance offer fixed premiums. This means your premiums will remain the same throughout the policy, even as you get older. Buying cover in your 20s could mean locking in premiums than if you wait to buy cover in your 40s or 50s.
2. Avoid buying more cover than needed
It’s natural to assume that the more cover you have, the more protected your family will be should anything happen to you. But, overinsuring could mean spending more money than you need to.
Life insurance can be used to cover a range of costs, such as:
- Outstanding debts
- Every day living expenses
- Rent or mortgage payments
- Childcare expenses
- Funeral and estate costs
Before you apply for cover, think about how much cover your family would need in your absence. You can then tailor your cover to match their needs rather than just selecting a higher cover amount that may not be necessary.
3. Compare policies and providers
Don’t settle for the first policy you come across. The life insurance market is competitive, and there can be significant variations in pricing and offerings among different insurers. Take the time to shop around and compare policies from multiple providers.
Factors to evaluate include:
- Premium costs: Make sure you’re comparing similar levels of cover.
- Policy features: Look for policies that offer flexibility and additional benefits that are important to you, such as critical illness cover.
- Company reputation: Check reviews and ratings to see if the company has a good track record for customer service and claims. A lower premium won’t mean much if the company is difficult to deal with when you need support.
You can use online comparison tools to get quick quotes or work with an independent insurance broker who can help you navigate the options.
4. Choose term life over whole life
If you’re looking for the most budget-friendly option, term life insurance is usually your best bet. It provides cover for a specific number of years and tends to have lower premiums than whole life insurance.
For families and couples who want to protect their loved ones during key financial years (while raising kids, paying off a mortgage, or building savings), a term policy offers ample protection at a much lower cost. This lets you invest the difference into other long-term goals like retirement.
5. Review your policy regularly
Your needs may change over time, and your policy should reflect those changes. For example, when your kids grow up or once you’ve paid off your mortgage, you may no longer need as much cover.
By reviewing your policy every few years or after major life events, you can adjust your cover to suit your current financial situation, which could lead to lower premiums. It’s a simple way to ensure you’re not overpaying for cover you no longer need.
Final thoughts
Life insurance is a key part of securing your family’s future, but that doesn’t mean it has to break the bank. With a little planning and the tips above, you can get peace of mind and keep more money in your pocket.