Not everyone needs life insurance – but many who aren’t currently covered do. A good rule to follow is that if you have people in your life – be it your children, partner or relatives – who depend on you financially, you would almost certainly benefit from holding a policy.

Here are some tips for choosing a life insurance policy – and reducing your life insurance premiums.

Check the cover provided by your employer

Some employers have a ‘death in service’ benefit, which may be up to two or three times salary. This will affect the amount of life insurance you will need, or indeed whether you need it at all.

Compare quotes

Sometimes life insurance can be offered in a package along with a mortgage, credit card or other forms of loan during the final stages of an application. It can seem attractively easy (and tidy) to sign up in one fell swoop when the option is offered to us – but, as with most other rates, it is prudent to shop around before you sign up.

Compare life insurance quotes from different suppliers, and see what policy will suit your circumstances best. Try to look beyond cost concerns, and focus instead on the length of the policy, and the amount of coverage it offers.

Get the cover right

There are many considerations that can – and, indeed, should – figure into your life insurance calculations.

Underestimating how much coverage you require could result in your family struggling financially after your death. Overestimating how much coverage you need, however, means that you could end up paying too much every month.

When taking out a life insurance policy, consider the following;

• In the event of your death, will you leave behind any outstanding debts which would pass to relatives, or children?
• How much will your funeral arrangements cost?
• Will your overall household’s income cope with the loss of your contribution?
• Do you want to leave a legacy for your family? If so, how large?

Answering these questions as accurately as possible before you start sourcing quotes and comparing services should ensure you get the coverage right.

His & Hers?

If you’re interested in a joint policy for you and your partner, investigate separate, individual policies alongside joint policy quotes – you may find that the latter option offers better value.

This is because joint life insurance policies offer identical cover to both parties – and, chances are, you and your partner require different levels of coverage, or may have different profile (age, weight, lifestyle). Taking out individual life insurance policies could mean lower premiums overall – so do take the time to see which option suits your needs better.

Health

Like almost every other form of insurance premium, life insurance premiums are calculated according risk; the greater the risk that you will die before your policy term ends, the higher your premium will be. Therefore, improving your health can help to reduce your life insurance costs.

Making changes to your lifestyle – such as a healthier diet, and quitting smoking, for instance – could result in lower premiums (although, many life insurers will only classify you as a ‘non-smoker’ after a year-long break from the habit). Contact your insurer when you make these changes, and see whether it’s possible to negotiate a more equitable price.

Consider the perks

Many life insurance policies now come with attractive perks, such as reduced gym membership fees, discounts for days out, counselling services, even M&S vouchers. Don’t be seduced by the perks into taking the wrong cover, but all other things being equal, you might as well make the most of them.