How to get a low life insurance premium?
Life insurance coverage is one of these things that you never get to appreciate, whilst you are alive. It only costs money right? Well, ask the widows and children, who received a payout, how it helped them during a very difficult period in life. It is not possible to organize your life ahead for the full 100% – life always has surprises in store. Some good, some very bad. With life insurance your family can achieve it’s plans, even when you are no longer there to provide financially. So how can you get a low life insurance premium?
After medical insurance, which you can read all about here, life insurance is another protection product that, according to financial planning theory, should be in place before you think about investing. Life insurance needs vary, depending on where you are in the financial lifecycle and the purpose for which you need protection.
Think like an insurer:
When you buy life insurance the provider takes on a risk that it will have to pay the agreed sum in case you die during the insurance term. The life insurance company employs actuaries whose main task it is to estimate the risk of your death. Based on this risk they calculate the required premium accordingly. Age and health are the main criteria on which the premium is based. You rather insure a 25 year old than a 55 year old as an insurer. Therefore it is easy to get a low life insurance premium early in life, when you are healthy and unlikely to die.
How much cover do I need?:
We have developed a simple guide which will help you to calculate your personal life insurance needs. It is straight forward and designed to make sure you don’t forget any important areas of cover. Once you know your insurance needs a premium calculation can be made based on your age and other factors. Access the detailed life insurance need calculation page here and learn about other uses for life insurance and how they can help you.