How can I Reduce my Life Insurance?

Many of us will have life insurance. This might be connected with our mortgage as often mortgages will have a requirement that we have an insurance to cover us so that if we die before the mortgage is repaid, it will be repaid in full. We might also have life insurance so that out family get a pay out should we pass away when they are relying on us to provide an income for them. On either case, you will find that the premiums can be pretty high. There are things that you may be able to change though, which could bring them down and so it is worth making sure that you are aware of them so that you can decide whether you want to try them out in order to reduce the amount that you are paying.

Compare Insurers

It is a good idea to start off by finding out whether there are cheaper insurance policies available for you. There are lot of companies out there offering life insurance and it is very likely that there will be one that you find will be cheaper than the one that you are with. You can search in a number of different ways. You can use a comparison website, which will compare a number of different insurers and this will mean that you will be able to see how is cheaper. However, these will only look at a proportion of insurers and so there may still be cheaper ones that they have not identified. You may find that they will only recommend insurers that give them a high rate of commission for doing so. There are also some insurers that will only deal directly with customers and not go through this sort of website. However, they are useful, so that you get an idea of whether you might be overpaying or not. You may choose to use a broker to find you a good rate. They will again, be paid by commission so might be just looking at the insurers which will provide them with the best commission as well. They will also only be able to recommend insurers which deal through brokers and not this that deal directly. This means that you might have to do some research yourself as well to see if there are any direct insurers that are cheaper.

By comparing the prices you will get a good idea of whether you are overpaying. However, you do need to be careful that you are comparing like for like. This is because you will find that if you are not careful, you will end up with a cheaper insurance that will not cover you for everything that you want cover for. So, you need to be completely sure that you are getting what you expect before you switch. However, in most cases, you will find that you can get the cover that you need for less than you are currently paying.

Negotiate with Your Insurer

You may feel that you do not want to change your insurer though. You may have had a good service from them or just feel that you do not want to risk moving to someone different in case you get a poor service from them. Therefore, you could just try negotiating with them to see if they can lower the price. Do compare the price and if you see cheaper insurance cover, then you will be able to let them know that there are cheaper policies available but that you want to stick with them and you will be able to see whether they might be prepared to lower the amount that you are paying.

Stop Smoking

One thing that life insurers are always interested in is whether you smoke as it puts you at risk of illness and early death. This means that if you can give up smoking it will reduce the cost of your life insurance. It will of course, also save you a lot of money and it will mean that you will be healthier as a result. Even if you can cut down, it might have an impact on the cost of the insurance and so it could be a really good idea to give this some serious thought.

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