One fact of life is that, sadly none of us gets to choose when our time is up. While protecting our loved ones is at the forefront of our minds when buying life insurance; the potential costs are a key consideration too. Thankfully there are several ways to get cheap life insurance, so you can ensure your family is cared for in the difficult times ahead.
But first, what are the main types of life insurance available?
Main types of life insurance
If you’ve started your search for life insurance you may already be familiar with the two main policy types - whole life insurance & term life insurance. The main differences between these two types of cover are the cost and length of policy.
Whole life insurance
Known by insurers as ‘life assurance’, this type of cover protects you for the rest of your life. When you die, your family receives a cash lump sum to support them in this challenging time.
The value of your payout is fixed throughout the policy as well as the cost of your monthly premiums. It’s important that you keep up with your monthly payments or your insurance provider will end your cover.
Though this is typically the most expensive type of life insurance, the benefit is that your loved ones receive a pay-out no matter when you die - so long as you keep up with your monthly premiums!
Term life insurance
Unlike whole life insurance, term life insurance only covers you for a set amount of time (i.e 20 years or so). Your family will only receive a pay-out if you die within this timeframe - known as the policy term.
How can I save money on life insurance?
Protecting the people we care about most shouldn’t leave us out of pocket. Luckily for us, there are a number of ways we can cut the costs of our policy.
3. Consider getting a joint policy
Joint life insurance is popular amongst many couples and long-term partners. It covers two people under one policy, often making it both cheaper and easier to manage.
If you and your partner or spouse share the joint financial responsibility of your household it may make sense to take out a joint policy. Though remember, if a claim is made on a joint life first death policy and the policy pays out; the surviving partner will need to apply for a new policy if they still require life insurance cover.
4. Don’t smoke
It’s well known that smoking is damaging to your health, not to mention your wallet. Most insurers charge extra for premiums if you are a smoker due to the significant decrease in life expectancy it causes.
Therefore it’s best to give up as soon as possible not only for your health but also from a financial perspective. Some insurers may reduce the cost of your premiums if you quit and manage to stay smoke-free.
5. Opt for a term life policy
As mentioned earlier, term life insurance is one of the cheapest options for life cover. Although it doesn’t provide permanent protection like whole life insurance, it is much more flexible both in cover and cost.
Why buy life insurance?
When it comes to life insurance, there are more reasons to buy cover than not to. Sadly death is something we cannot prevent, but we can plan for it, ensuring our loved ones are supported for the future.
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