A lot of people initially buy life insurance through their bank, building society or mortgage lender because it's convenient, only to later realise that they're paying above the odds. It might be tempting to put off shopping around for a better deal because changing life insurance providers seems like a hassle. But when it comes to securing cheaper premiums with another provider, procrastination could end up costing you dearly.
In this blog, we'll outline why it's better to look into switching insurance providers sooner rather than later. Don't assume that because you've bought a policy recently you won't be better off by switching either, even if you've bought a policy in the last 5 years you could still save money!
The younger you are when you take out a life insurance policy, the lower your premiums will generally be. This is because a younger person is significantly less likely to die within the term of the policy, and so represents a lower risk to the insurance provider.
As such, it pays to look into switching life insurance providers as soon as possible, as the cost of a new policy will only go up as you age. In other words, if you are paying too much for life cover and you don't switch, the chances of finding a deal that saves you money elsewhere reduces significantly.
In addition to age, your health status at the time of taking out a policy is used to calculate your eligibility and premium costs. If you're currently in good health, and do not have a personal or family history of illness, you can usually expect to pay lower premiums than someone with medical conditions.
As discussed, you're more likely to find a better deal on life insurance if you switch providers while you're still young. Similarly, if you are overpaying for life cover and you want to switch providers, you're more likely to find a better deal if you do so while you're still in good health.
It's a sad truth, but we never know what the future has in store - and this is particularly true when it comes to health. As such, it's financially savvy to switch life insurance providers as soon as possible, rather than risk leaving it until it is too late and you are no longer able to find a better deal elsewhere.
In addition to the costs of premiums, it's also worth remembering that, as you get older and your circumstances change, you may find yourself eligible for fewer types of policies and lower levels of coverage. For example, while you are younger and in better health, you are more likely to be able to take out policies with add-ons such as critical illness cover.
This means that, if you switch providers sooner, you are more likely to secure more comprehensive coverage elsewhere - something that might save you hundreds, if not thousands, of pounds in the long-term.
You can find out whether you could be saving money on your life insurance costs by comparing quotes with our impartial life insurance comparison tool. It's quick and easy to use, and allows you to instantly view and compare quotes in one simple search.
If you find a better deal than your current one, all you need to do is apply for cover, wait for your application to be accepted, and then simply contact your former provider to cancel your old policy. (Remember never to cancel your current policy until your new one is in place!)
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