This post is part of Money Watch’s Big List of Money Saving Ideas.
By and large, life insurance premiums have reduced over the last 5 or so years, so if you took out your policy back then, it might be worth finding out if you can get a cheaper premium. Also, if you too you life insurance policy out with your mortgage, and through your mortgage provider, then the chances are you are paying well over the odds for it.
It’s worth remembering that as you’re older and possibly unhealthier now, this might make premiums higher than your current rate, despite the general fall in rates, but there’s no harm in getting a few new quotes.
If you’re going to replace an existing policy, it’s best to make sure it provides “like for like” cover – that’s to say, your new policy gives you as much cover as your existing policy does. If your situation has changed, then it might also be a good time to review the cover you have – you may be able to increase the cover you have and pay a similar premium to your existing policy.
Another thing to remember when you’re replacing a policy is that you should make certain that your new policy is in force before cancelling your existing policy so that you are continually covered – just think of the concequences should something nasty happen between cancelling your first policy and the start of your new policy.
So where should you look for cheap life insurance? Possibly the best place to start is MoneySupermarket.com – their life insurance search will compare the prices from many different insurers and brokers.
Know anymore tips for saving money on life insurance? Let us know in the comments below.
I have noticed lately that there are alot of concerns about life insurance policies and the fact that you have to keep them for at least a year or whatever the term says before you can actually bank on the policy. So if you get a life insurance policy and you die in 2 weeks, then you do not get the life insurance payoff because you died too fast (no matter what the reason is). It is important to check out the life insurance company you are going to be dealing with on this aspect.