Women tend to live longer than men and it is because of this that women often have had lower life insurance premiums. However, since the EU Gender Directive has been in place, gender is no longer a contributing factor when determining the price of insurance premiums. The price of life insurance varies with each individual but it is worth considering some of the things that you can do in order to help cut the cost of your premium.
Get it Online
Buying insurance online is much cheaper than buying through an independent financial adviser which can be very expensive. Using a comparison site instead will save you a lot of money so make sure to keep this in mind before buying life insurance.
Smoking can have a major effect on the cost of your life insurance. The biggest rise of life insurance premiums, thanks to the new directive, was 20.4% for a 20-year-old female smoker. It would have been an average of £6.08 a month but the smoking factor brought it up to £7.32 a month.Steve Barnes, Financial Adviser at Endsleigh, said: “People should remember that any kind of smoking in a 12 month period classes you as a smoker in the eyes of an insurance company.” However, it must be noted that you are only classified as a non-smoker if you have “abstained from smoking or from using nicotine replacement products for at least 12 to 18 months.” Because of this, it is worth keeping in mind the extent to which our general wellbeing has on our life insurance prices.
Taking out your policy as early as possible is the best way to insure that you are qualified for cheaper insurance.
Choose the Right Type of Cover
The type of policy you choose has a direct effect on the cost of your policy. You can either choose from whole life insurance, which is the most expensive, or term insurance which means you will only be covered for the duration of the policy.
Don’t Over Insure
Work out exactly how much cover you need to avoid over insuring yourself. You can talk to an impartial adviser to help you with this and to give you a better idea of how to handle the situation. You’ll end up paying much more than you need each monthif you over-insure yourself so make sure you insure the correct amount.