Whether you’re young or old, life insurance is a great way to protect your family if you pass away. The cost of life insurance can vary depending on your age, health, lifestyle, and other factors. If you want to make sure your family can cover future finances, you should consider purchasing life insurance. Here are six ways to help get an affordable life insurance policy…
Once you have been accepted for life insurance cover, you are required to pay monthly premiums to your insurer. Both age and health are two important factors when it comes to the cost of life insurance. In most circumstances, life insurance cover is cheaper when you are younger, as there is less chance of a claim being made.
In that case, buying cover at an early stage can save you money in the long term. The cost of your premiums can also depend on the type of cover you buy. For example, premiums for whole life insurance are typically more expensive than term life insurance. This is because it provides permanent cover.
Term life insurance is a type of policy which covers you for a set amount of years. When you die your insurance provider pays out a cash lump sum to your loved ones, supporting them with future costs. Although term polices are a regarded for providing affordable life insurance cover, there is a downside.
Your family will only receive a pay out if you die within the policy term agreed upon with your insurer. If you survive the term, the policy expires and you won’t be able to claim any money for the premiums paid. But if you’re looking to save money on cover, term life insurance is an ideal choice.
It’s well known that smoking has a negative impact on your overall health. Frequent smoking can increase your risk of heart disease, lung cancer, among other diseases. Premiums for life insurance tend to be significantly more than non smokers, as you are deemed a higher risk to insure.
However, with most insurers, you can have your premiums lowered providing you remain smoke-free for at least 12 months. So if you’re looking to apply for life insurance, it’s best to quit sooner rather than later.
Having a policy with fixed premiums can be an easy way of having affordable life insurance cover. For example, if you buy cover when you are young, at which point premiums are usually cheapest, you can lock in a lower premium. However, if you wait till later in life to apply, your premiums are likely to be more costly. Both whole and level term life insurance provides fixed premiums for policyholders.
The truth of the matter is, we only get one life and only one body to live it in. Although it’s said often enough, improving your lifestyle may help you to live a longer and therefore fuller life. Not just this, but it could also reduce the cost of buying life insurance.
While you can’t change into a health freak over night, there are a number of ways you can improve your lifestyle, such as:
- Eating more healthily
- Exercising more often
- Reducing your weekly alcohol intake
- Limiting the amount of junk food you it
- Try walking or cycling to work if possible
Seeing two people joined in whole matrimony is one of life’s most joyous occasions. But if you’re married or in a long-term partnership, you may want to ensure both parties are protected should the worst happen.
Joint life insurance covers both you and your spouse/partner under a single life policy. Many couples find it a more affordable choice for life cover, as it can be cheaper than taking out separate policies. It’s ideal for ensuring your loved one can be left to cover any finances, such as a mortgage, if you die before it’s repaid.
This type of cover has two options – first death and second death. With first death, the policy pays out after the first death in the couple. The surviving member is then left with the necessary funds to support your children or clear any debts in your name.
As you may expect, second death pays out once both you and your partner have died. This means the pay out will be issued to your chosen beneficiaries, such as your children.
If you’re worried about how much cover you need or the type of policy you should buy, speak to a specialist broker who can advise you. They’ll be able to explain all the different types of cover available and what they offer. Or if you’re worried about whether you can afford life insurance, speak to a financial advisor.