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!)
Click here to find out how much you
could save on your life insurance today.
