'Consider short terms' for life insurance premiums

Tuesday, February 9th 2010

People looking to save money on their life insurance premium may wish to consider opting for the shortest term possible, according to the managing director of Equity Partners.

Kevin Tooze commented that while it is essential that policies cover people's needs, such as mortgage payments, they will find they pay less in life insurance premiums by making their term as short as they possibly can.

Other ways to save include making healthier lifestyle choices. Maintaining a healthy weight, giving up smoking, cutting down on drinking and participating in fitness and sport activities could all have an impact on how much people pay for life insurance, he said.

"Also, your job [can affect your premium]. For instance, if you are a window cleaner then you might find that your premium is more expensive than that of an accountant," Mr Tooze explained.

Insurer Legal & General notes that moving house, re-mortgaging, becoming a parent, getting married or a change in income level are among the most common reasons for people to purchase life insurance.