Why aren’t you getting cheaper life insurance quotes? Here are a few explanations as to why you might be receiving costly quotes, so that on your next insurance venture, you’ll know the route to simple saving.
The internet’s great. Where else can you simultaneously order your shopping and check your emails, all the while watching funny videos of cats? But with this kind of convenience comes a few catches.
With so much information around you, it’s hard to see the wood for the trees (hence the picture above!!), and life insurance is no exception. Navigating the forest of financial freedom with the baggage of such bills is no easy feat, which is why so many of us end up off-course and out-of-pocket.
So for those of us looking to ensure the financial stability of our dependents in the event of our death, mapping out the route is a serious matter requires serious thought.
Reason #1: You may not be putting in the legwork
It really makes sense: if you end up coughing up for the first quote you find, you’ll never know if there are cheaper alternatives out there. There is a saying that good things come to those who wait. WRONG! Good things come to those who get up off their backside and put the effort in.
And while technically you might still be sitting down whilst doing your online research,
if you’re prepared to search and compare with other providers, you’ll be in a comfortable position to choose the most competitive rate.
Reason #2: You may be paying for the added perks
A little cynicism never hurt anyone, and when it comes to finding insurance, it’s particularly useful to scrutinise every last scrap of detail. That ‘free’ fountain pen doesn’t pay for itself, and while you may still have a soft spot for cuddly toys, it’s important not to lose sight of the real product you’re after.
Free gifts can bring a small smile in the otherwise serious affair of seeking life insurance, but don’t be blinkered by them – this is often the insurance company’s way of masking a more mediocre deal.
Reason #3: You may be using a commission-based broker
Many people are not aware of the added cost attached when buying with a commission-based broker. In fact, a recent YouGov survey found that the average commission taken is 24%, in stark contrast to consumers’ estimates of 5-10%. This is how they cash in on your pricey premium, but it doesn’t always have to be this way.
There are brokers out there offering affordable policies who won’t hit you with the heightened rates of commission. Best Price FS, for example, provide online life insurance quotes and specialize primarily in 0% commission products. While you may be charged a small, initial fee, this money is reinvested to ensure that you receive only the best service. More importantly, though, this will also work out as far more affordable – your original £20 will soon be clawed back in smaller premiums.
Reason #4: You may be setting your cover too high
Life Insurance is all about safeguarding your loved one’s financial future so it makes sense to want a level of cover which will comfortably achieve this. Although we mean well, our eyes can sometimes be a little bigger than our bellies and the level of cover we take out is larger than what is necessary. This, in turn, is reflected in the higher premiums we pay as a result. So, next time you file a form, be realistic and only take out the insurance that you need. Set the cover at a level which is comprehensive but not excessive and you’ll see the premiums decrease dramatically.
Reason #5: You may be too much of a risk
The life insurance business is all about calculating risk, and while they’ll cover just about anyone for the right price, insurance companies certainly don’t like to back the wrong horse. If you find your premiums looming at lofty heights, it’s likely that your lifestyle choices are marking you out as more of a risk.
Whilst not the swiftest of solutions, taking steps to improve your health – be it packing-in smoking or losing weight – can really have an impact on your insurance rates. Other risky behaviour can have an effect, so it’s important to weigh up how much activities like skydiving really mean to you – quit plummeting through the air and you may see a plummet in your premium price.
Armed with these explanations, you’ll be able to forge your path to cheaper life insurance quotes, safe in the knowledge that savings are sitting just around the corner.
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