Life Insurance Search

The first step in looking for cheap life insurance cover – as with most things – is to decide just what it is you want to buy. When it comes to life insurance, the principle is quite straightforward, since you will be looking for a policy that pays out in the event of your death before the end of the insurance term. Since it would be your death that is the determining factor, there will be little to choose, of course, between different policies, other than the way in which the death benefit is paid; namely, a choice between: 

• Level term life cover;
• Decreasing term life cover:
• Increasing term life cover; or
• Whole-of-life cover (if you would need the benefits paid whenever you die and are looking for a form of savings plan as well as life cover).

The biggest single determinant of the premiums you will need to pay each month is the amount of the lump sum paid in the event of your death. Clearly, this is usually a careful balancing act between what you would like to leave your surviving dependents and what you can actually afford. You can make your life cover cheaper, of course, by reducing the level of protection and this means having a clear idea of just what the policy is intended to cover. If it is to repay a mortgage balance that is declining over the years or if it is to provide security for young children who are of course approaching independence as time goes by, then you might consider a decreasing term life insurance cover. Because the assured benefits paid also reduce over time, the premiums will be cheaper. 

The range of factors that will be taken into account when seeking a life insurance quote include your health, age, occupation and lifestyle. Under each of these headings you could score as a higher or a lower risk. Unfortunately, however, you are unlikely to have much control over most of them – and will not be able to do much in this regard to secure cheaper life insurance. The exception, of course, is the decision to smoke. If you are prepared to stop, then your life insurance quote will certainly come in much cheaper. 

Some couples are sold joint life insurance on the suggestion that it is cheaper than each individual taking out his and her own life insurance. With joint life cover, there is only one payout and that is when the first of the partners dies. There is no payout on the second death. Joint life insurance, therefore, tends to be appropriate only if both partners need the same level of cover. Furthermore, joint life insurance can often as not turn out to be just as expensive as two individual life insurance policies (which of course assure two separate payouts). 

An independent financial adviser or insurance broker could also help you identify the life insurance cover most appropriate to your needs. With his help in advising on the most suitable products and his expertise in comparing life insurance quotes, it could well help you to find cheaper life cover.  

In summary, if you are looking for cheap life cover: 

• Decide on the right type of life insurance to suit your specific needs;

• Decide the level of cover that will be needed by balancing your surviving dependents’ needs against what you can afford to pay in premiums;

• If you smoke – stop. This can help to reduce your premiums, as can losing weight if you need to.

The author of this life insurance article is Alan Knight.

This article does not represent ‘financial advice’ as each person’s individual requirements will be unique to their needs. If there is something in the article which you decide to rely on, then make sure you check those details with the person from whom you purchase any product or service.

The views in this article represent those of the author and not those of Netbasic Limited.