The cost of life insurance has steadily decreased in recent years thanks to a combination of improved technology, increased competition and advances in medical science (leading to increased life expectancy). In this article, we provide 3 quick tips to ensure you are getting the best value life insurance, including how to double your life insurance cover without having to break the bank.
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Tip 1 - Shop around
It is widely accepted that shopping around is the only way to guarantee the best energy tariffs and there are services that can make the process as painless as possible - check out our article 'The best energy auto-switching services in the UK'. Life insurance is no different and so if you haven't checked to see if you can save money on your life insurance policy in the last few years then what are you waiting for?
While online comparison sites may give you a rough idea of the cost, they are not the best option when it comes to life insurance as the systems they use do not ask the relevant questions to give you an accurate quote. Additionally, comparison sites do not always consider the whole market and so you are often best speaking to an independent life insurance specialist such as LifeSearch*, as they have qualified specialists that have access to the whole market and they guarantee to find you the cheapest quote.
Tip 2 - Beware the free pen!
Life insurance should be bought for the right reasons and not simply because of a free pen or clock. Many Over 50s life insurance policies offer free gifts to sweeten the deal and the adverts are enticing as they make the whole process sound so simple. There is nothing wrong with over 50s life insurance, in fact, for some people, it offers the perfect solution, however, most people could be better off buying simple term life insurance product, such as level term insurance or decreasing life insurance. Check out our article 'Which is the best over 50s life insurance' for more information.
Tip 3 - Double your life insurance by getting a policy each instead of a joint policy
A joint life insurance policy is often bought to protect a mortgage or to provide family cover if you have children. A joint life insurance policy will cover two people on one policy and will pay out should either person die within the policy term. There is a way however that you can double the amount of cover without having to double the monthly premiums. Rather than buying a joint policy, you can elect to have a policy each, known as taking out two 'single life' policies. Not only does buying two single-life policies double your cover, it means that should either person make a claim, the surviving person's policy will remain in force. With a joint policy, the policy is cancelled after a successful claim, meaning the surviving person is left without any life cover. In a worst-case scenario where both insured people were to die, two single life insurance policies will pay out for each death whereas joint life insurance will only pay out once.
Below are two examples that demonstrate the difference in cost between a joint policy and 2 single life insurance policies. The quotes are based on both policyholders being aged 35 and non-smokers.
£100,000 - Joint life vs 2 x single life insurance comparison
| Total Cover | Remaining cover after making a claim | Total Premium | |
| Joint Plan | £100,000 | £0 | £10.87 |
| 2 x Single Life Insurance | £200,000 | £100,000 | £13.26 |
£200,000 - Joint life vs 2 x single life insurance comparison
| Total Cover | Remaining cover after making a claim | Total Premium | |
| Joint Plan | £200,000 | £0 | £18.44 |
| 2 x Single Life Insurance | £400,000 | £200,000 | £21.24 |
As you can see from our two examples above, doubling the cover only costs around 20% more. Additionally, in the event of a claim, by buying two single policies, the surviving policyholder keeps their plan in place. The best way to buy life insurance is to speak to an independent insurance specialist such as LifeSearch* as they can handle the whole process for you, including helping to fill in the application forms, chasing the insurance company and even placing the policy into trust (ensuring the proceeds are paid out to the beneficiaries without the need for inheritance tax).
One note of caution, however, if you are shopping around and have existing life cover do not cancel this cover until any new policies are underwritten and on risk to prevent you from being uninsured for a period of time.
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
