| Your life insurance premiums
will be calculated according to various factors - your age, your health and your
lifestyle. If you are an older person who smokes and has medical problems then
your life insurance premiums will always be higher than those of a younger, healthier
person. Women also generally pay lower life insurance premiums because, statistically,
they live longer.
You cannot change your age, but there are certain things which increase the
chances of getting a relatively cheap life insurance policy in the UK.
- If you are a smoker, the answer is simple- just quit. You will not only improve
in health but will also make huge cuts on your life insurance.
- If you suffer from a medical condition such as diabetes or cancer then find
an insurance company that is more sympathetic to your needs. Specialist companies
will have underwriters who will analyse your specific situation and adjust your
premiums accordingly, rather than simply allocating you a pigeonhole and lumping
you into a particular group. Going with a life insurance company that understands
your situation can help you get a cheap policy.
- Be wary if you are ever advised to surrender one life insurance policy and
take another out with a separate company - it is very rare that you will not lose
money by doing this. Almost always the process will involve some kind of loss
on your existing policy which you will either have to leave or make paid up on
your new policy. Choose your life insurance company carefully and you will hopefully
never even have to consider a change!
- Shop around when you are looking to purchase life insurance, don't simply
go with the first offer that comes your way. Compare the prices that different
companies offer for the same levels of cover. You may be surprised to see how
cheap one UK life insurance provider is compared to the next.
- Often you can save money by paying your premiums annually. Many insurance
companies will charge you more if you want to make payments more frequently.
- Check the investment performance of your life insurance company's funds as
they can be indicative of future price changes. If life funds have performed badly
then it could mean that premiums will increase in later years.
- Due to the food scares that have plagued us in recent years, sometimes you
can receive a discount off your life insurance if you are a vegetarian. The companies
that do offer such a service will require you to sign a legal declaration confirming
your vegetarian status.
- Be sure that you are not over-insured and paying for life insurance cover
that you do not actually require. It is equally important, however, to make sure
that you are not under-insured.
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