5 ways to slash your life insurance premiums

3 min Read Published: 26 Sep 2023
5 ways to slash your life insurance premiums
5 ways to slash your life insurance premiums

People often assume that life insurance is expensive but it can be low cost and there are ways you can make it even cheaper. In this article we provide tips on how to bring down the cost of your monthly life insurance premiums, including how you to guarantee you are buying the right life insurance policy for you as well as how to get up to £100 cashback. Read on to find out more.

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1. Don’t over insure yourself

Check the amount you are insured for and also the length of your life insurance policy (known as the 'term'). Life insurance premiums are based on a number of factors but the two that make up the bulk of the cost are the sum insured and the length of the policy. By reducing the size of the sum insured and/or the length of the policy you can make a significant reduction to the cost. You may, for example, have paid off debt since you originally took out your policy or you may have built up more savings which means that you require a lower level of cover.

2. Buy the right life insurance policy

Is your current life insurance policy the right policy for you? There are many different types of life insurance and so it is worth checking your current policy to see if there is an alternative that may be cheaper. Decreasing term assurance is a policy that will decrease over time in line with your debts and is far cheaper than a level life insurance policy, where the sum insured remains the same. Joint policies can be cheaper too, so if you live with someone and have individual policies, it may be worth considering combining the cover. However, bear in mind that a joint policy will usually only pay out when the first person dies. If you need help to select the most appropriate life insurance policy, then you can read our article, "best and cheapest life insurance in the UK"

3. Get Healthy

Life insurance premiums are based on your health at the time of your application and so it is possible your health may have improved (or perhaps you can make lifestyle changes now that can bring your premium down in the future) since you took out the original policy. Have you given up smoking? Have you lost weight? Is your blood pressure now at a normal level? Importantly, if your original life insurance cost was increased due to ill health and you have since recovered, you should get in touch with a life insurance expert to see if this will reduce the cost of your life cover policy. All of these things can significantly bring down your life insurance premium and it would be worth exploring whether you can now get the same life insurance policy cheaper.

It is not just your health that can impact your premiums, your lifestyle and even your hobbies can too, so think about the answers you gave when you bought your life insurance and if your situation has changed, it may be worth getting a new life insurance quote.

4. Buy now

If you don’t currently have a life insurance policy (and you know that you should have one) then seek advice now from a life insurance specialist. Life insurance premiums take into account a number of factors, one of which is your age. The older you are, the higher your monthly premiums are likely to be as you are statistically more likely to die and therefore claim on the policy. If you are not sure whether you need life insurance you can read our article "Do I need life insurance?"

5. Shop around

Life insurance is a competitive market and just like car insurance and utility bills you should shop around to get the best price. Don’t ever assume that the quote you receive is the cheapest or best life insurance quote on the market. We would recommend that you speak to an independent expert so that they can conduct a full search of the market. The advice they provide is free. We've personally vetted the service of an independent protection specialist who can give you advice on the best policy for your circumstances. Just fill in this short form* to get started and they can call you back at a time that is convenient for you. Plus, if you decide to take out a policy, you could earn up to £100 cashback.

Bonus Tip: Put your life insurance policy into trust

When you speak to an independent expert, ask about putting your policy into trust. A trust form ensures three things, it ensures that:

  1. the beneficiaries avoid paying inheritance tax
  2. you nominate who should receive the proceeds if the life insurance policy pays out
  3. the proceeds are paid out swiftly by the life insurance company (without the need to go through probate)

Also, remember to review any trust when there are any changes to your circumstances (eg. divorce or marriage) to ensure it still fulfills your wishes.


If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses and do not wish to qualify for the cashback referred to in the article - LifeSearch