When looking to the future, life insurance is one of the best ways to protect your family’s finances in the event of your death. The gross value of premiums in the UK in 2021 is estimated at £166.5 billion. With this in mind, you aren’t alone in the worry that a life insurance policy might be too expensive to fit your budget.
However, you don’t always have to worry about paying exorbitant premiums if you know where to look. In fact, there are many ways that you can seek out cheap life insurance. To assist you in finding the right policy for you, here are 5 ways to get an affordable life insurance policy.
1. Group life insurance
Group life insurance is a great way to make life insurance more affordable. In the case of employee group life insurance for businesses, every employee of a company, association or workers union will be offered life insurance as an additional benefit to their take home salary.
In some cases, group life insurance might be free, or at least inexpensive, with the option to put a little more of your salary towards the policy if you want to upgrade to better features. This is because employers often foot the cost of the policy rather than the employee, as they will benefit from the policy too.
2. Consider joint cover
Joint life insurance is available for couples and marital spouses. It is true that these policies are cheaper and easier to manage than two individual policies, but they do have their disadvantages. The main disadvantages are that joint policies will only pay out once, and there could be a problem is you separate in the future.
3. Get life insurance when you are young
Life insurance is most associated with older generations due to the assumption that you only need life insurance once you’re older. This is seen in the share of adults with life insurance in the UK, which shows that the demographic most likely to take out life insurance is those ages 45-54, whereas people between 18 and 24 make up 2% of life insurance owners.
However, getting life insurance when you are young and healthy can save you money on your life insurance. Your premium is based on how likely you are to claim from your insurer, so you have a better chance of getting an affordable policy whilst you are young.
4. Look for optional extras that could be costly
Take a look at what features come as standard with the policy. You may find that there are premium optional extras that can be costly in the long run.
5. Do your research and compare prices
Above all, it is crucial to do thorough research and do some price comparison before taking out any policy. Though you might be tempted to go for the cheapest option, this may not be the most cost effective, just as the most expensive might not offer every feature possible.
With all this in mind, all that is left to do is to get started on finding the best policy for you, knowing that you have all the tools to find a life insurance policy that is affordable for your family.
