5 top tips to lower your life insurance premiums in 2023

Life Insurance offers reassuring peace of mind knowing that should the worst happen; your loved ones are secure from financial hardship.

If you have a partner and/or young children who rely on you financially it is vital to have a safety blanket in place.

Could they afford to pay the mortgage, meet rising family living costs, and put the children through university if you were no longer around to provide?

However, during the current cost of living crisis, many families may question whether they can afford to pay a monthly life insurance premium.

As a result, here are 5 top tips to help lower the costs of your life insurance this year:

Tip 1 – Compare multiple quotes

Finding the lowest life insurance quote that meets your needs may be easier than you think. Life insurance brokers, such as Reassured, offer plenty of detail about the variety of life insurance available and can compare quotes completely free of charge.

There is likely an ideal quote at an affordable price for everyone, regardless of how unique your situation is. However, it is imperative to compare multiple quotes as costs can vary wildly between different providers.

Finding an insurer and comparing different products can be done by many different sources, such as online brokers, agents, and direct insurers.

Tip 2 - Improving your health

Organising your life insurance when you are recorded to be ‘unhealthy’ can be a little more difficult and increased costs are likely; although some health factors cannot be helped, lowering your BMI and reducing your alcohol intake can directly impact costs.

Staying active and healthy lowers the risk of premature death. Researchers offer estimates of comparisons in early death for active to inactive people - in the UK it was found premature death rates in active people were 15% lower (around 3.9 million people) due to people staying fit and eating well.

150 minutes of moderate exercise/75 minutes per week of vigorous exercise is a requirement that should be met in order to maintain a healthier lifestyle, according to the World Health Organisation.

In the UK, around 64% of the population have admitted to following this.

Rest assured, life insurance is available for the overweight and/or those with a high BMI, although rates tend to be higher for those with complications such as diabetics and high blood pressure.

Premiums can increase and decrease depending on lifestyle, medical history, and BMI. BMI, ‘Body Mass Index’ is calculated by weight and height proportions.

Depending on insurers, rates may vary in this category too, so again benchmark different providers to find your best available quote.

Tip 3 – Choose the right policy type and term

Decreasing term life insurance is a form of life insurance that pays out less as time goes on, which traditionally covers things like a repayment mortgage. It may be better if you do not need to offer as much financial support in the future, to loved ones.

It can also be useful as you do not have to manually reduce your cover over time to match your circumstances. An economical insurance option that still provides cover for financial day-to-day depts.

Lastly, the longer the policy term the great the monthly premium (as a claim is statistically more likely). So, take the time to calculate the length of term you specifically require; perhaps until the mortgage is paid off or the children are financially independent for example.

Tip 4 - Check employee benefits

Employee life insurance is a benefit that is often hidden. It is something that isn’t necessarily spoken about when looking at the benefits of a job, when in fact it can be more important than the company car...

If employee life insurance/death in service benefit is included in your work benefits it means that if death occurred during your employment, your employer would pay out a sum of money to family/ nominated beneficiaries.

Usually, the sum is equivalent to 2 of 3 times your annual salary and therefore not sufficient to cover all your financial needs. However, you can use these funds to offset the level of personal cover you require, therefore reducing your premiums. 

Tip 5 - Look for guaranteed premiums & get cover whilst young

Guaranteed premiums are where you pay a flat fee for your life insurance coverage that is not subject to adjustments based on the amount of loss an insured party experience.

This is a great way to feel confident, prices are fixed and remain the same throughout the policy term, particularly poignant at this time of severe price rises.

Buying such cover as young as possible can save you money as the older you get the higher your premium will be. If you are in your 20s you could secure £200,000 of cover for approximately 20p a day and lock this premium in for 40 years.

So, as your life evolves (have children, get married, buy a home) your financial future is secured.

We hope these top life insurance tips will help you save on your monthly premiums in 2023.