Cheap Life Insurance

The price you’ll pay for your life insurance isn’t clear-cut, as multiple factors will impact how much you pay for your policy. Some of these may include:

• Age: the older we get, the more likely we’ll be to develop serious illnesses and medical complications, so age plays a significant role in determining how much you pay for a policy. As a result, younger people can expect to pay cheaper premiums, while seniors and those over 50 will likely fork out much more for their policies.
• Lifestyle: hitting the gym regularly may allow you to take out a cheaper policy, while being a smoker or leading an otherwise unhealthy lifestyle will likely mean you pay a higher price for your coverage. Some insurers may look at factors such as your weight, blood pressure and cholesterol, as well as any other risks associated with your condition or habits, when assessing how much you’ll pay.
• Level of cover: choosing a higher sum insured means you’ll pay more for your life insurance. Make sure you assess your needs carefully to help you avoid overreaching and paying for cover your family may not necessarily need.
• Employment: part of your risk assessment by your insurer will also take into account your employment. Different positions may be deemed a greater risk of resulting in circumstances which leave you critically ill or injured, permanently disabled or even dead. For instance, a high-rise window cleaner will likely be deemed a greater risk than an office worker.
• Pre-existing conditions: do you have a pre-existing medical condition? If so, you may pay a higher premium to secure coverage. Some insurers may offer cover for your pre-existing condition if it meets their qualification requirements, but others may charge a loading (additional cost) to cover it or exclude it altogether. This may also apply to those who don’t have any current health issues but carry a family history of hereditary conditions.
• Stepped or level premiums: stepped premiums allow your insurance costs to start cheaper and increase as you grow older, while a level premium keeps your payment at a steady price for the term of your policy (only rising with inflation and insurer base rates). This may mean that while they’re costlier to begin with, level premiums may be cheaper as you get older. Either way, your decision on which to go with will shape the cost of your premiums.
• Waiting periods: the longer the waiting period, the less you’re likely to pay for insurance. While most policies are subject to waiting periods, some insurers may enable you to select what these are in certain instances. For example, you can often choose between a period of two weeks and two years when purchasing income protection insurance.