With 384 authorised life insurance providers in the UK (Statista) finding the right policy at the right price needs the right research.
Underwriters have strict criteria to assess each customer and decide if they can offer cover and at what price. Some of these criteria are related to your lifestyle choices, but some of them out of your control, such as age and gender.
Comparison websites will often show you the cheapest prices but in the insurance industry cheap rarely means best. When it comes to securing life insurance honesty is always the best policy. Providing inaccurate information can result in lower payouts or no payout at all.
Here are the things that have a big impact on life insurance policies and premiums.
Age
Age is the biggest factor affecting the price of a life insurance policy for a simple reason – the older you get the more likely you are to die within the policy term. As a result, the older you get the more expensive your premium is.
Typically, life insurance premiums increase by 8-10% each year as you get older and your policy should cover you up to around age 90. If you decide to get cover later in life you might find that there are extra hoops to jump through. For example, there are specific policies for older people aged 50+ which often require a medical assessment or a letter from your doctor.
Gender
A study in 2019 revealed that women are less likely to have life insurance compared to men. And on average, the value of the cover they do have is around half as much as men.
You’ll also find that women tend to pay lower premiums than men, as statistically they live longer and are therefore less likely to die within the terms of their insurance.
Occupation
Working in a ‘risky’ role can make your life insurance premiums more expensive. Construction is the most dangerous job sector in the UK as well as jobs in farming, commercial fishing, security or emergency services. There are certain jobs that require specialist insurance such as Army life insurance, Navy life insurance, and Pilot life insurance. These are specialist policies that reflect the fact that you are likely traveling to dangerous places as part of your job.
Pre-existing Medical Conditions
If you have a pre-existing medical condition this may also affect the cost of a life insurance policy. However, it depends on your condition and how you manage it. You must always make insurers aware of any conditions before taking out a policy – if you fail to do so it could result in a lower payout or no payout at all.
Other Factors
Additional factors that will affect your life insurance premium prices are:
- Overall health
- Smoking status
- Alcohol consumption
- Family history – Do you have relatives that have passed away from genetic diseases?
- Participation in risky hobbies such as sky-diving or rock climbing
Remember to always be honest when taking out life insurance policies, otherwise you run the risk of no payout if you die from an illness related to something undeclared.
How to keep life insurance costs down
When purchasing a life insurance policy, you’ll want to keep costs as low as possible while remaining properly covered. Again, always be honest when taking out a new life insurance policy and provide accurate information about your smoking and drinking habits, weight, and overall lifestyle.
If you take out your life insurance policy at a young age, you’ll also have the benefit of averaging out your yearly premiums. So, instead of paying lower prices when younger and higher prices later in life, you pay an average of the whole premium each year.
Making lifestyle changes like giving up smoking, cutting down on the amount you drink, and losing weight are all good ways to reduce your policy costs. Comparing prices before you commit is also good practice and something we can help you with at The Bateman Group. We have access to the whole of the market including hundreds of providers that are not listed on traditional comparison websites.
To start your Life insurance search today call us on 01926 495 113 or fill out our contact form
