Paying too much life insurance?

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financial safety net

life insuranceIf you already have a life insurance plan, it’s definitely worth reviewing it in case you’re paying too much.

Here are some of the reasons why!

Life insurance costs less

Yes it’s true. Life insurance is one of the only things that has actually gone down in price over the last few years!   This is because of the increase in life expectancy.

Get independent advice

There is a huge difference in premiums between all the different insurance providers.  For example, the cost of £200,000 life insurance for a 30 year-old non-smoking female ranges from £10.65 per month to £13.12 per month.  That’s a difference of 23%!

Lifestyle

If you were a smoker when you took out your life insurance but have since given up, you could save a significant amount by reapplying as a non-smoker.  Smokers pay nearly twice as much for their cover!

The same applies to other high-risk areas – if you are no longer overweight, you could cut down on the cost.

Given up bungee jumping and deep sea diving? It’s time to take a look at your policy!

Do you have the right kind of insurance?

There are so many different types of life insurance: Term, Whole of Life, Decreasing, Increasing, Family Income Benefit, Reviewable, Guaranteed, Renewable, Convertible… It’s a minefield out there!

If you have a review of your insurance needs, you could find that you do not have the right kind of cover for your circumstances – and again there is an opportunity for saving some money.

Often people find out that they are doubling up on cover. You may have “Death in Service” at work, which gives you adequate cover in itself.  If you have a pension plan, you may not have considered that the fund would pay out a lump sum to your beneficiaries in the event of your death before retirement.

Most Independent Financial Advisers will do a quick check of your insurance policies to see if there is a need to review them.

Henrietta Oxlade is an Independent Financial Planner with Radcliffe & Newlands and MyFamilyClub’s in-house finance sage! She has been advising individual clients since March 1988, which is why many of her clients consider her part of the family. If you want to get in touch with Henrietta, email us on [email protected] and we’ll put you in touch.