Save On Your Premiums

July 28, 2011

Chris Morgan, Marketing Manager

 By Chris Morgan

Are you looking for cheaper Life Assurance?

Sometimes we meet people who really would like to have Life Assurance, but really cannot afford to pay the monthly premiums. In the past this might have been the end of the issue, but recently we have seen a whole new type of product that has made Life Assurance more accessible, especially for young families and / or people in financial difficulty.

Wade and Lenny recently moved house and changed their £800,000 mortgage for one of £400,000 because they were having difficulty with meeting their payments. They also asked us to look at reducing their life assurance costs at the same time, as this had also become unaffordable and they were thinking of cancelling their plan.

Wade Said …

‘We really see the benefit of having Life Assurance to protect each other in the event of death. However, we are currently paying an enormous premium of £185.00 per month which we simply cannot afford to maintain anymore.

Lenny Continued …

‘We would like to have some form of Life insurance in line with our new mortgage, but would like to make sure we have a more manageable premium. Our circumstances may get better in the medium term, so it would be useful if that could be taken into account.’

Here’s some advice about getting cheaper premiums on your life assurance.

If you have had your Life Assurance for a while it may be worth checking the current market rates for your premiums. Life Insurance rates have been reducing steadily for the past ten year’s due to competition and changing claims experiences of the insurance providers.

It’s also worth looking at your actual need for Life Assurance every few year’s because circumstances change. An example of this is where people have been overpaying on their mortgage and they have a decreasing mortgage insurance alongside, which is over insuring them.

If you really need Life Assurance for protecting your family or children and feel that you cannot afford the standard premiums it may be worth considering take out a ‘low start’ plan. This type of plan is cheaper at the beginning and rises annually throughout the term of the plan.

And Wade & Lenny

We recommended a ‘low start’ Life Assurance plan with a sum assured of £400,000 alongside their new mortgage. The premium was around 40% less than the one they were currently paying, which meant their premium came out at an affordable £111 per month and they were able to keep their Life Assurance in place.

Sometimes it’s worth shopping around looking at all the possible options.

Chris Morgan is a freelance journalist and qualified Independent Financial Adviser. He is the Marketing Manager of Compass, The Gay Mortgage and Insurance Advisers and can be contacted by phone 0845 474 3075 By Email enquiries@compassindependent.co.uk or by web www.compassindependent.co.uk