It is important not to cut corners to save a few pennies when taking out a life insurance policy, this doesn’t mean there aren’t sensible and easy ways to cut the cost of your life insurance.

How much cover do you need?
Life Insurance versus Life Assurance.
Quit smoking and lose weight.
Shop around.
Avoid inheritance tax.

How much cover do you need?

Insuring yourself against injury or death is a necessary precaution, the level of cover you need will vary from person to person.
The reason most people take out a life insurance policy is to protect the fate of their loved ones should anything happen. This usually means taking out a critical illness cover and income protection policy. This means the mortgage and bills will not be left unpaid if anything should happen to the main breadwinner.

Life Insurance versus Life Assurance.

Life Insurance is intended to protect you from something that might happen, whereas Life Assurance protects you from something that will happen. Life Assurance results in the pay out of a lump sum when you die, the cost of your monthly premium is dependent on how much you want the lump sum to be when you die. It is important to consider how much money your family will need when you die.
Many people ensure there will be enough to pay off the remainder of the mortgage, others want their loved ones to receive a monthly sum to cover their monthly income.
Sometimes taking out a policy as a couple is not the cheapest way, premiums should be carefully compared individually and as a couple to find out which is the cheapest way.
You will be asked to set a term on your cover when you purchase it, the term is how long you are covered for, and you must make your choice very carefully. If you die after the expiry of your term your family will receive nothing.

Quit smoking and lose weight.

Many insurers will hike up policy prices for anyone who is overweight, or who smokes. These can be costly hikes, and to qualify as a non-smoker you must have given up for the minimum of one year. Each insurer will classify being overweight differently but the standard seems to be anyone who has a Body Mass Index of over 29.

Shop around.

Only Insurance will compare the policies available to you on the market and present the best price and overall package you can get. Switching your cover from your current insurer could also save you a lot of money, it is worth searching the market to see what is available to you and Only Insurance can help you do this.

Avoid inheritance tax.

If you write your policy into a trust which will pay out directly to your dependents and therefore does not ever become a part of your estate it will not be eligible for inheritance tax.
The only thing to be aware of is that trusts can be difficult to alter even with the consent of everyone involved, if it is likely that you will change the dependent named on your policy this may not be the best route for you.