Ask any sample group of UK consumers how best to save money onand chances are a pretty sizeable majority will have one of two answers – scrimp on coverage or lie on the application.
Sadly, either of these approaches will lead to a policy that quite literally isn’t worth the paper it’s printed on.
The good news however is that there are, in fact ways and means by which considerable savings can be made on life insurance without resorting to cheating or sacrificing quality of cover.
It’s the kind of service nobody would like to face the prospect of using, but at the same time everyone could do with setting up.
So, in order to get the most for your money and ideally make a few savings along the way, here’s a quick overview of the most effective tips for new applicants:
1 – Take Care of Yourself.
It sounds like a bit of a no-brainer, but is at the same time the simple step that’s most consistently overlooked…or ignored. Quite simply the healthier you are, the less you’ll be asked to hand over in life insurance premiums. Bad habits like smoking, drinking and leading a generally sedentary lifestyle can be expensive in more ways than one, so for the sake of your wallet and your day-to-day wellbeing, take good care of yourself.
2 – The Earlier, The Better.
The earlier in life you arrange cover and begin paying your premiums, the less it will cost you on a monthly basis. Not that this is of any help to those already in their senior years and yet to arrange cover, but for those of a younger age still mulling the idea over, it’s worth remembering that the earlier things get sorted, the better. And of course, the peace of mind that comes with life insurance is simply priceless at any age.
3 – Joint Policies.
One of the most effective ways of making monthly savings for the long-term is to consider taking out a joint policy if applicable and available. This can amount to considerably lower monthly premiums and a more manageable outgoing in general. In the case of the policy being called upon, this will result in just a single pay-out rather than two separate policies being taken out.
4 – Compare the Market.
Along with speaking to an independent adviser on the subject, it’s also a good idea to compare the market as thoroughly as possible in order to see who’s offering what and for how much. Each time you find a better deal, use this as a yardstick and feel free to ask other service providers to equal or better the deal you’ve been offered elsewhere.
5 – Be Honest.
And finally, this point was touched upon right at the beginning but is worth mentioning again – honesty is the very best and only policy when it comes to making an application for life insurance. Yes, you might end up with a cheaper deal if you claim to have never smoked a cigarette or touched a drop of alcohol in your life, but the moment it becomes clear you weren’t being honest, and it will, your policy will be rendered null and void. And what’s more, you could find yourself on the receiving end of a legal quarrel for fraudulently applying in the first place.