Around 28% of businesses avoid getting life insurance due to the cost. But investing in life insurance can really help to protect both your business and your family. You can actually save money on your life insurance by selecting the right policy to give you the cover you need. Getting the best price for your life insurance doesn’t have to be difficult. You can follow some simple steps to cut costs and get a good deal on your life insurance.
1) Find a good broker
Having sound advice when it comes to financial products is a must. Finding a reputable company that offers free quotations and advice on your life insurance can really help you to find a good product. Going with the cheapest option isn’t always the best for your needs. Therefore, speaking to a qualified professional can find the right policy that covers you for what you need it to. Business life insurance is more complex that personal life insurance, but you can make some good savings if you speak to the right person.
2) Concentrate on your health
With some insurance policies, you can actually get discounts each year if you lead a healthy lifestyle. Life insurance goes up if you are unwell. Heart disease, strokes and diabetes are all preventable condition that can hike up the cost of your life insurance. Having a healthy BMI and get regular health checks can speed up the process of your life insurance application. Regular exercise, even as little as 30 minutes 3 times a week can help to cut costs too. If you’re fit and healthy, your life insurance company will see you as less of a risk which means you save money on your premiums.
3) Stop smoking
Smokers, on average pay around a third more than non-smokers. Heavy smokers can double the cost of their premiums. If you can stop smoking for at least 12 months, you can save money on your life insurance. The good thing, you can cancel a policy at any point. So, you don’t have to miss out in the meantime. You can take out a policy, and then review it when you’ve quit. That way, you’re still protected and a year later, you’ll be saving the pennies.
4) Shop around
When you’re looking for business life insurance or personal life insurance, it’s important to compare prices as well as policies. You may not be aware what type of life insurance you really need so finding the right policy can be a really good way to save money. Comparing like for like policies as well as different levels of cover can help you work out what you really need. In addition to this, by comparing prices with different insurance providers through a qualified insurance broker can help you get better value for your money.
5) Choose term life insurance
Whole of life insurance is generally more expensive and it is unlikely that you’ll need it forever. In fact, term life insurance can save you much more money and still protect what you need. If you want to cover a mortgage or business loans, then getting term life insurance will be all you need. Most people keep life insurance until they no longer have anyone dependent on them. Therefore, you can take out term life insurance until your children grow up or you have a spouse that is self-sufficient.
6) Don’t over insure yourself
Getting the right amount of cover to protect yourself can help you save money. After all, you don’t want to get more cover than you actually need. Most life insurance companies provide a calculator to determine how much life insurance you may actually need. In addition to this, insurance advisors can help advise you what you need cover for. You may wish to cover inheritance tax paid on your estate or wait until you’ve paid off a mortgage. Either way, you can choose the right amount of cover that suits your specific needs to save money.
7) Update your cover
Life insurance is completely and easily cancellable. This is because most insurance providers realise that life changes quite a bit throughout life. If your circumstances change, such as having children, getting married or paying off your mortgage, you may want to look at reviewing your cover. Some policies have renewable terms, but you can often spend more money once the policy is renewed. Instead, shop around and compare policies to see if you can get yourself a better deal. Insurance brokers will do this on your behalf, so you can save some time too.
8) Put your policy in a trust
You can right an insurance policy into a trust to save on inheritance tax. Anyone who has an estate over £325,000 pays 40% inheritance tax on the amount. Therefore, an insurance policy can help to counteract that cost. When a policy is written into a trust, the payout is tax-free, which means your family comes out better off.
9) Pay for life insurance through your business
Business life insurance is often a little more complicated, but you can make some great savings by taking out a policy through your business. Relevant life insurance and key man insurance are tax-efficient life insurance policies in some circumstances, so you can make some great savings by running your life insurance through your business. When you pay for life insurance through your business, you can offset it against corporation tax and save on your premiums each year.
10) Get it while you’re young
The cost of life insurance increases the older you get. Waiting to get your life insurance can actually cost you money. If you’re thinking about getting life insurance, it’s best to get it while your younger to save money. With every birthday you have, the more expensive it will be.
Life insurance isn’t expensive. Most people are put off by the cost, but actually the level of protection you get can be invaluable. Life insurance provides peace of mind to businesses and families and can help to protect your loved ones. Do your research, and don’t just opt for the cheapest policy but find one that suits your specific needs.