Life assurance costs keep falling
The steady fall in life insurance premiums means you could be among millions of people who could save money by switching to new policies.
Life insurance premiums have fallen on average by 30% over the past ten years and are still falling thanks to steadily increasing life expectancy. Though the cost of a life insurance policy rises with age, if you are under about 40, the fall in premium rates is usually greater than the effect of higher age, so that a new policy ending on the same date can cost less than the policy you have.
So if you took out a level term policy over five years ago you should find it worthwhile getting quotes for a replacement and could well save money. But don’t do this if your health has deteriorated since this will require higher premiums.
The other area where greater savings are now possible is if your Body Mass Index is higher than the norm for your age and height. Some insurers will now automatically penalize you with higher premium rates, while others don’t do so unless there is evidence of ill health. Here the difference in premiums can be startling, and there have been plenty of cases where brokers have been able to secure cover at half the premium rates originally quoted.
In fact if you have any form of illness or a family history of illness such as heart disease or diabetes, always use a broker to find the right cover since insurers vary widely in their attitudes to particular forms of illness and there is usually at least one insurer whose rates are nearer the normal premiums.
Another area for savings is ex-smokers. Once you have been off the weed for over 12 months, you can apply for a non-smoker policy, where rates are now under half the non-smoker rates. You can be a lot older and still pay lower premiums for the same cover.
