Life Insurance – getting the right cover means you don’t pay more than you have to!

Getting life insurance can sometimes feel like a confusing and complicated process where you can often wonder whether you are getting the right deal to meet your needs.

We’ve put together these tips which could help you reduce costs when purchasing life insurance. Bob says: it is important to get expert advice before taking out any kind of life cover, so these tips are just a helpful guide:

Choose the right policy

The two main types of life insurance are ‘term’ insurance and ‘whole of life’ insurance. The first is usually much cheaper as it pays out only if you were to die during the policy time period. ‘Whole of life’ insurance is different as it has no time frame – lasting until you die (providing you keep up your monthly premium payments). This policy provides a guaranteed pay out, which subsequently makes premiums more expensive. Find out more about the different types of life insurance with our guide.

How much cover is needed?

As you might expect, you are likely to pay a higher premium for policies which offer a larger pay out. If, for example, after you die your family could manage financially on a pay out of £200,000, then there wouldn’t be much point in having paid more money for a pay out of £500,000.

Buy life insurance when you are young

A simple fact is that the cost of life insurance rises with age – just because the older you are, the closer you are to dying! By arranging life insurance cover when you are in your 20’s or 30’s as opposed to your 40’s or 50’s, your premium is likely to be a lot less. You’re often healthier in your younger years too which also has an impact on premiums.

Quit smoking

Being a smoker increases the amount you pay for life insurance. You must have given up smoking (including any e-cigarettes and nicotine replacements) for 12 months before you are classed as a non-smoker. If you are a smoker, this could be something to consider before purchasing life insurance.

Consider joint cover

Life insurance premiums can often be significantly lower for a joint life policy, so couples could opt for this cover instead of having two single life plans. However, it is important to note that a joint policy will only pay out once so it’s important to choose whether you want it to pay out on a first or second death basis which is why it’s important to get advice from someone who specialises in life cover.

Write your policy in trust

By writing your life insurance policy in trust, your family may be able to avoid inheritance tax (IHT), which is currently 40% if your estate is over a certain amount. There are many other benefits to writing your policy in trust which can be found in our guide here.


Last but not least, compare! Different insurance companies all provide different premiums for policies so it is always ideal to shop around and compare prices before you make a commitment to a policy. Bob’s life insurance friends we can take care of this for you and find you the best life insurance deal from a large panel of leading UK insurers.

For more information, visit our life insurance page now to find out more and get a quote. You can also use our life insurance calculator to estimate your premium costs.