Be smart and save money on your premiums
We advocate smart life insurance. Being smart not only ensures you don’t end up paying over the odds, but it can also make sure your family are fully protected.
When you consider life insurance can alleviate your loved ones of financial burden after you’re gone, it’s easy to see the importance of having cover.
A pay out can be used to clear a mortgage, meet future living costs, settle outstanding debts, cover funeral costs or provide an inheritance.
But arranging your life insurance cover isn’t always straightforward.
- Which policy option should you choose?
- How long do you need cover protection?
- How much life cover do you need?
- Should you secure a joint policy or 2 single policies?
- How can you save money on my premiums?
See below our top 5 tips to help you be smart and secure the right policy at the best price:
Don’t take out too much cover
When arranging life insurance it can be tempting to take out the highest level of cover available to you.
But these unnecessarily high levels of cover come with an increased monthly premium. After all, the higher the amount of cover you opt for, the more it will cost you.
Take some time to establish how much cover you actually need. Consider:
- The size of your mortgage
- Your level of personal debt
- How many dependants you have
- The age of your children, (when will they be financially independent)
- Whether you enjoy any cover through your employer, (like death in service).
Once you have given some thought to your personal circumstances you’ll be in a strong position to decide on a suitable cover amount.
The key is not to either over or under-protect yourself.
Choose the right policy to meet your needs
Term-based life insurance policies generally offer a lower monthly premium as a pay out is not guaranteed and you could outlive the policy.
Decreasing term life insurance tends to bring the lowest monthly premium as the value of the pay out decreases over the policy term.
In order to be smart, ensure you opt for the most fitting policy type to suit your personal needs and budget.
On occasions, budget permitting, it can be beneficial to take out more than one policy to meet different life needs.
For example, decreasing term to cover a mortgage, as well as an over 50s plan to cover funeral costs and provide an inheritance.
Write your policy in trust
Having your life insurance written in trust ensures your family receive the pay out quickly and don’t have to pay 40% inheritance tax on the sum.
Writing your life insurance in trust allows you to specify exactly who it is you want your life insurance policy to benefit and when.
It will also allow you to avoid the lengthy probate process and detach the sum from your estate to limit the amount of inheritance tax paid.
This will mean not only will your beneficiaries receive a larger proportion of the pay out, but that they’ll also receive the funds faster.
Be smart and have your life insurance policy written in trust.
At Reassured, we offer a completely free, trust-writing service. Get in touch with one of our experts today.
Always compare multiple quotes
Comparing quotes from different insurers allows you to find the most cost-effective policy.
Different insurers can provide the same level of cover but monthly premiums may vary.
Using an FCA registered broker allows you to receive unbiased information, allowing you to make your own informed decision.
Reassured will do all of the legwork on your behalf, comparing the top life insurers. And the best bit, our award-winning service is completely free to use!
Always be honest
Never be dishonest on your application as your loved ones may be denied a pay out and your investment would have been wasted.
If any of the information provided during the application is considered to be false, your policy will be deemed invalid and no pay out issued.
‘Non-disclosure’ is the most common reason for a claim to be denied.
Therefore, it’s really important to ensure that when arranging your life insurance cover, all of the information you provide is correct.
Being honest when arranging your life insurance is definitely a very smart move.
Your steps towards securing smart life insurance
Taking out life insurance can actually be a simple process. Following these few easy steps can ensure you secure the right policy to suit your specific needs.
Arranging smart life insurance cover could not only save you money on your monthly premiums, but it could also ensure your family don’t risk being denied a pay out.
When taking out a life insurance policy, ensure you employ the following:
- Only take out the amount of cover necessary to meet your needs
- Ensure you take out the policy type which best suits your needs
- Write your policy in trust to ensure your loved ones received a full pay out as quickly as possible
- Compare multiple quotes to find the best deals
- Be 100% honest during the application to avoid a claim being denied.
Use an FCA registered life insurance broker
Unfortunately, insurers can offer very similar levels of cover at very different prices.
To ensure you get the right cover, at the best price, it’s always good to compare life insurance quotes. However, this process can be time-consuming and often frustrating.
Another option is using a comparison site, but remember most don’t compare all insurance providers.
Using an FCA regulated broker, like Reassured, can save you both time and money by comparing all the major insurers.
Our award-winning, no-obligation service is completely free to use.