Advice to help you save on life insurance

Over the past few months as the cost of living continues to bite, I've noticed a sharp increase in people seeking help to get their life and living insurance costs under control. So, how is it that these costs get out of control in the first place, and what can you do to stay one step ahead with your cover?

Choose your premium structure wisely

Premiums for most life and living insurance products come with options, but by far the most common is premiums that increase each year in line with age. This means premiums are almost guaranteed to rise each year, and as we age these increases become sharper and harder to manage.

But there is another way.

Most people haven't heard of Level Term premiums, but in my opinion they are one of the best ways to stay in control of your insurance costs and ensure cover will be affordable for as long as you need it to be. Level-term premiums work by choosing a period of time (usually 10 years, to age 65 or to age 70, but some providers offer more options), and for that period of time, your premiums are levelled-out and will not increase each year due to age (they may still increase if the insurer increases the core cost of the product, though, or if you've chosen to have your cover amount increase each year to keep up with inflation).

Level-term premiums are an excellent way to make budgeting easier and ensure you have the cover you want when you need it most, and can be a great way to avoid finding yourself in a tricky situation where costs have gotten out of control and you're needing to make tough decisions about your cover.

That's not to say they suit every situation, though - level-term premiums work best when you know you'll need the cover for at least the period of time you're locking in. You're still free to make changes or cancel your cover if you need, but the cover works out most economical when help for the duration of the locked-in term.

Review your cover regularly

If you arranged your life, living or health cover through a financial adviser, they should be helping you to review your cover occasionally and make sure it's doing the job you need it to do. I conduct reviews with all of my insurance clients annually, and find the quick review sessions are a great way to pick up on any life changes that may require changes to clients' insurance covers, such as having a child, buying or selling a home, or changes to employment. Regular check-ins on your insurance cover will also give you confidence that you're not paying for cover you don't need, and are an opportunity to ask any questions about how your cover works.

If you haven't had a review of your cover in the last 12 months, reach out and I can help you to look over things.

Get the right cover at the right price, with the right insurer

Not all covers are made equal. In fact, even though they may have the same name, virtually no insurance product will work in exactly the same way from provider to provider. Taking time to work with your adviser to understand what you need to achieve with your cover will help to ensure you're matched with an insurer that best fits your needs.

A great example for young parents is income protection cover - some providers offer an additional benefit that can cover childcare costs over-and-above your monthly insured amount, which is great additional value that could save you thousands in the event of a claim. Not all providers offer this, and the ones that do may not necessarily be the cheapest, but understanding the benefits and ensuring your insurer is well-matched can help to ensure you're well taken care of if you ever need to claim.

Cost is always an important factor, too, so when you're taking out new cover it's helpful to understand the different costs between providers. When I help clients with recommendations, I always include a cost comparison so they can see how their costs compare to the other providers I work with.

Make the most of workplace cover

Many workplaces provide free life, living, income protection or health insurance cover for employees, which can act as a great cost saving for you - but most people I talk to aren't aware of what their workplace provides and haven't incorporated it into their protection plan. In many cases it's possible to keep your workplace cover even if you leave the company for another job. Ensuring your free workplace cover is understood and built in as part of your plan can help to keep your costs down and means your free cover has a purpose.

Make the most of free advice

Most of the time it doesn't cost a cent to get personalised insurance advice that's tailored to your needs and goals, so there's no need to go it alone to try and figure out what you need. My process always starts with a quick catch-up, either in-person or over a video call, to see how I can help and get an understanding of what you'd like to achieve. Then I send out a link to complete a Fact Find - an online interactive questionnaire that's designed to help to determine your risks and get you thinking about what's most important to you. From there, I prepare personalised recommendations for you, and we catch up so I can talk you through them. There's no obligations, and the process is designed to be as painless as possible!

If you'd like to catch up to review your cover, or talk about your insurance needs, you can schedule a catch-up here:

Remember, this is not personalised financial advice, and you shouldn't act on anything mentioned in this blog without first seeking independent financial advice.