Life

5 ways you can save money on your life insurance

General ways to keep the cost of life insurance down, from taking cover out earlier and stopping smoking to shopping around and checking you need it at all.

Life insurance is different from most other cover. It doesn't pay out while you are alive; it pays out when you die, usually to your partner or family. There is real comfort, though, in knowing the people you care about would be supported.

Life insurance doesn't have to be expensive. Here are five general ways to keep the cost down.

1. Take out cover earlier

Generally, the younger you are, the cheaper life insurance is. Many people don't think about it until they are older or have started a family, but taking it out earlier can mean lower premiums.

Insurers assess your level of risk when they set the price, and the risk rises with age. Waiting is unlikely to make cover any cheaper.

2. Stop smoking

There is a reason this appears on every list, and why it is one of the main questions on any application. Smokers usually pay more for life insurance than non-smokers.

Stopping smoking can improve your rates over time, as well as your finances and your general health. Insurers usually ask whether you have used tobacco or nicotine products within a set period, so check how they define a non-smoker, and always answer honestly.

3. Be clear about your health

Your health is one of the biggest factors in the price. Some policies can be taken out without a medical, while others may ask for medical information or a check. Giving full and accurate health information means the insurer can price the cover properly and helps make sure the policy pays out when it is needed. Leaving things out could mean a claim is refused.

4. Shop around

The provider you use for other insurance may not have the most suitable life cover for you. Prices for life insurance can vary a great deal between providers, so it makes sense to look at more than one option and compare the level of cover as well as the price.

With Kompare, you fill in a short form and a broker from our panel contacts you to talk through quotes. You can read more on our life insurance page and see how we work.

5. Check whether you need it at all

If you have a partner or children, or a mortgage that someone else would have to pay, life cover can make a lot of sense. If you are single, with nobody relying on your income and no mortgage, there may be nobody who would need the payout.

In that case, you may want to look at other kinds of protection instead. Income protection, for example, can pay a portion of your income if you can't work because of illness or injury, which may be more relevant to someone without dependants. The government-backed MoneyHelper service has free guidance on the different types of protection.

If you have questions, you can contact us.