When you make the decision to get life insurance you may well have a multitude of reasons for doing so.
Perhaps you’ve started a new family and want your children to have some financial security should something happen to you or your partner, or perhaps you simply want to provide for your partner in the event of you passing away.
Whatever your reasons you will no doubt feel that the marketplace for life insurance can be confusing and while you want great cover you want it to be the cheapest life insurance you can find.
It’s important to consider three relatively simple factors when looking for life insurance, which as a starting point will enable you to find the cheapest life insurance relatively easily.
How much life insurance do you need?
This is probably one of the main questions that gets asked when you’re looking for life insurance, but how exactly do you work it out?
First off, you may well want to multiply your current salary by three for a financial legacy figure. Obviously you can get life insurance for a higher amount, but this is a good starting point.
What bills do you have?
Obviously a mortgage is probably your biggest expense, so you may want to include a sum of money to cover that should something happen to you. However, if you already have mortgage cover you may not need it.
In terms of other costs, you may want to tally up any larger loans or financial commitments you may have now so that your life insurance will pay these off in the event of your death.
This is obviously something to consider as well when taking out life insurance. These days the average funeral costs £3200, so this is the kind of sum you might want to add to your life insurance cover, as it will offer practical support when you’re no longer around.
Getting the cheapest life insurance
Once you’ve got your figure you can then begin to look at the marketplace to find the best cover at the best rates.
Usually insurance brokers or comparison services offer a great way to get quotes from lots of insurance providers in one place, so you are much better placed to find the best life insurance at the cheapest rate. Using a life insurance comparison service also saves you a lot of time looking.
You may also find that using a life insurance comparison service also results in cheaper quotes, because brokers have room to offer discounts or even cash back on their services.