There are ways to reduce the cost of protecting your loved ones in the event of your death.  Here we explain how you can pay less for your life insurance.

Shop around to save money on your life cover

You can save money shopping around for life cover. Premiums vary greatly from insurer to insurer and you can save hundreds of pounds by searching for the best price for life insurance. You may get a discounted premium by going to a broker or independent financial adviser.

Discount Life Insurance Brokers

Insurance brokers search from a range of life insurance policies for you to find the best cover at the lowest price. Brokers will help you work out what sort of life insurance you need and then search to find the right cover at the lowest price. Insurance brokers receive a commission from insurance companies for each policy they sell. Some brokers will give you some of this commission back as lower monthly premiums and you pay them a fee instead. Discount brokers sacrifice some or all of their commission and give you lower premiums. Instead of receiving a commission they charge you a small fee instead, £30 to £40 is typical.

Stop smoking

The healthier you are the less you will pay for your life insurance. By stopping smoking you could cut the cost of your premiums by up to 50 per cent. You will normally need to have stopped smoking for 12 months to qualify for lower premiums. Some insurers will give you a discount if you are using nicotine patches.

A shorter policy term

The longer your life insurance policy lasts for the more you will pay and the longer you will be covered. By opting for a shorter term you can benefit from discounted premiums, but of course if you die after the policy has ended your dependants won’t receive any money from it.

Buying when you are young

The younger you are the less you will pay for life insurance. Of course the older you are the more likely it is that you might die and as a result premiums are higher.

Buy a joint or single policy

If you are a couple when you shop around for life insurance you should get quotes for both single and joint policies. Depending on your particular circumstances you could save money buying the policies together or separately. However you need to bear in mind that if you have a joint policy the cover will end if one of you dies. It could then be too expensive for the surviving person to take out another policy if they still need life insurance protection for their family. A joint policy to pay off the mortgage could be cheaper than two single policies and as the mortgage will be paid off the surviving person probably won’t need to buy another policy.

Reviewable and guaranteed premiums

There are two types of premium when you buy life insurance. Reviewable premiums start lower and increase over time. Guaranteed premiums remain the same for the length of the policy. Although you may save some money initially choosing a reviewable premium as the premium increases over time you could end up paying considerably more than a guaranteed premium policy.

Family income benefit

Family income benefit insurance is cheaper than term insurance as it only pays out a monthly or annual benefit from the time of death until the end of the policy. For example, if you died 20 years into a 25-year family income benefit plan your family would receive a monthly income for the remaining 5 years. This type of cover may not be enough on its own. If you have a mortgage or other debts then you should probably also have mortgage protection assurance or level term assurance life cover.

How to find the right discounted life insurance plan

Always remember discounted does not always mean best value. Life Insurance is only needed when you are not around your loved ones. Therefore choose the policy wisely and make sure there is adequate cover.

If your circumstances changes make sure that you inform your life insurance provider and have adequate cover that meet your needs.

Life insurance is complicated and it's essential that you choose the right policy. We specialise in life insurance and will search the market and help you find the right cover at the best price available.