How to Get the Most out of Life Insurance

We all want to get the most out of life, but if you’re not getting the most out of life insurance then it may be time to try a few of these simple steps.

Here are 5 tips which should get you on the right track.

1. Put in the legwork

As obvious as it seems, putting in a little extra time and research may unearth some far better quotes. After all, paying up for the first quote you find means you’ll never know if there are any cheaper alternatives out there. The saying goes that good things come to those who wait, but it couldn’t be more wrong here: good things come to those who put the effort in. Doing so means that whatever the prices you get back, you can be sure that you’ll have all the knowledge and options in your hands.

2. Don’t pay for the added perks

We all love a free lunch, but when it comes to finding insurance, these ‘free’ gifts are usually paid for somewhere down the line. So whether you have a soft spot for cuddly toys or you’re after a fancy new fountain pen, don’t lose sight of the real product you’re after. Free gifts can bring a small smile in the otherwise serious affair of buying life insurance, but don’t be blinkered by them – this may be the insurance company’s way of dolling up a less attractive deal.

3. Find a discount broker

Many people are not aware of the added cost of commission attached when buying with a typical brokerage or comparison website. In fact, a recent YouGov survey found that the average commission taken is 24%, contrasting greatly to the 5-10% estimated by consumers. Worryingly, this suggests that consumers think that more of their money is being used to going straight towards buying their policy when, in reality, it's going straight into the intermediary. If you don't like the sound of this, fear not - there is an alternative. 

Buying through a discount brokers can provide the same variety of choice and selection as traditional brokers without the heightened rates of commission. At Best Price FS, we provide online life insurance quotes with 0% commission. The commission we would receive is instead reinvested to ensure that you get lowest premiums possible. All discount brokers charge a small initial fee of approximately £20-£35 to set-up your policy but this will soon be even out by your smaller premiums in the long term.

4. Set a realistic amount of cover

Life Insurance is designed to safeguard the financial future of your loved ones, giving them the stability they’ll need in your absence. Therefore, it makes sense to get a level of cover which will comfortably achieve this. However, this shouldn't mean punting for a £1,000,000 payout when you know there won’t be any sizeable debts to pay off when you’re gone. A larger payout will equate to higher monthly premium so be realistic and save yourself some money. Set the cover at a level which will be comprehensive but not excessive and your premiums should decrease dramatically.

5. Reduce your risk

Life insurance premiums are calculated by your lifestyle choices. This can be anything from your general health to your hobbies and interests, so if you’ve got a penchant for paragliding then you may have a bit of bother getting decent insurance rates. Therefore, it’s important to weigh up how much these things mean to you before getting life cover. A more practical solution could be to take simple steps to improve your health, whether this is means giving up smoking or losing shedding a few lbs. Whilst not the swiftest of solutions, changes like these can really have an impact on your insurance rates.


Discount Broker Best Price FS provide commission-free life insurance from the UK's leading providers. Click the following link to compare life insurance quotes today.

One wonderfully simple way to get cheaper Life Insurance Quotes online

Buying life insurance can be costly, so if there’s an easy way to cut costs it makes sense to take advantage of it. After all, we’re only human.

One of the easiest ways to shrink the size of your premiums is to source insurance through a commission-free broker.

Simple? Yes. Obvious? Perhaps. Well-known? Unfortunately not. It’s a simple money saving strategy that so many fail to take advantage of, but here’s why you should…

Commission is the money-maker for brokers, the main culprit that drives up the cost of what should be an inexpensive product. The inflated price of the policy often forces people to sacrifice quality in order to afford the premiums, meaning that you don’t get the deal you deserve. Going with a commission free broker (also known as discount brokers) however, means that your hard-earned cash will get you the best quality product possible.

An example

To put this into perspective, here’s a real example using Discount broker Best Price FS’s comparison service.

Pete is a 33 year-old non-smoker who’s after individual, level term cover of £125,000 for 30 years. If this policy was bought directly from the cheapest insurer charging commission, a guaranteed £125,000 payout would cost:

• Per month: £8.90
• Per annum: £106.80
• Life of term: £3204

If the same was purchased with a commission free broker it would cost:

• Per month: £7.02    (£2.88 saved)
• Per annum: £84.24 (£22.56 saved)
• Life of term: £2527 (£677 saved) 

Savvy savings

As the example shows, you can save a considerable amount from buying through a discount broker. Although Pete’s £2.88 a month saving doesn’t seem like that much,  the worth of savings made over the full term (£677) is indisputable. What’s that saying again – ‘look after the pennies and the pounds will look after themselves’? It couldn’t be more evident here.

The general public have been fairly slow on the uptake regarding this money-saving tip. A recent YouGov survey reported a significant misconception of commission rates by consumers, perhaps explaining why so few factor it in when buying. On average 24% of the product’s price goes straight to the broker, but it doesn’t always have to be this way, not if you choose to venture down the commission-free route.

Cost effective?

When you choose to buy through a commission-free broker, you’re asked to pay a small initial fee. And while this may seem like their cunning way to sneak away with some commission, it simply provides a means of processing the policy. It’s true – you’re likely to pay out more initially than if you opted for a commission-based policy, but compared to guaranteed savings in the long term, it’s worth the initial spend.

Just make sure you’re not being taken for a ride, the cost of processing is relatively minimal, and in reality this should be no more than £20. Anything above this and you may want to consider looking elsewhere – for the same policy from the same provider, it pays to shop around for the best price broker.

With your new policy in place and the savings stacking up, you’ll be happy you did. And this is a disposable income you wouldn’t have otherwise had, so a great use for this extra cash could be on something for all the family. This way, you can still enjoy the best, even if you’re planning for the worst.

So if you’re after high quality but cheap online life insurance quotes, choose Best Price FS. A discount broker with a difference. To be directed to our main page, click here.

Life Insurance, Smoking and Saving Money: your questions answered

When it comes to life insurance and smoking, there's a lot of unanswered questions, read on to find out the facts.

Does smoking affect my life insurance quote?

Yes, smokers tend to pay more for online life insurance quotes compared to their non-smoking counterparts. This means that in the UK, there are approximately 10 million individuals (ASH, 2014), who are paying more for their premiums simply because of their choice to smoke.

Why do smokers have to pay more?

As expected, heath is a major factor that is taken into consideration when taking out a life insurance policy. It is a sobering reality but smoking is associated with many health-related problems. Recent statistics released by ASH show that every year, over 100,000 smokers in the UK die from smoking related causes, accounting for over one-third of respiratory deaths, over one-quarter of cancer deaths, and about one-seventh of cardiovascular disease deaths. For this reason, insurance companies view smokers as high-risk customers who are more likely to claim on their life insurance or critical illness policy and this risk equates to higher premiums for these smokers.

How much will smoking raise my premium?

Smokers’ premiums will vary depending on the insurance company, lifestyle variables, age and health but on average the cost is often double compared to non-smokers.

Using Best Price FS's online quote service, consider the following example for Pete, a 39 year old, male, admin working seeking life insurance quote for 25 years and £100,000 of cover:

If he was a smoker it would cost:      £14.86 per month

If he was non-smoker it would cost:  £7.77 per month.

If Pete was a non smoker, he could save £2,127 over the life of his policy.

How do life insurance companies define smokers?

Most insurance companies define a smoker as someone who has used a tobacco product in the past 12 months. It doesn't matter if you smoke from a pipe, cigar or cigarette, 10 times-a-day or occasionally, in the eyes of the insurers, if you're a smoker, you're a smoker: the health risks are the same.

Can I get away without telling them?

If you smoke, you should be honest from the outset and respond to the insurer’s questions truthfully and accurately. It's in your best interest, because if you're discovered to have been deliberately deceptive, (validated through medical records and medical examinations) the claim is likely to be denied.

Do e-Cigarettes count?

In recent years, electronic cigarettes have experienced a surge of popularity with approximately 2.1 million adults in Great Britain currently using them. Although e-Cigarettes do not contain any tobacco, they do contain Nicotine. According to the Association of British Insurers there is “a lack of medical evidence as to any long-term health benefits” regarding e-Cigarettes and added that “an insurer is increasingly likely to ask if the proposer is using nicotine products, as opposed to what is the weekly tobacco consumption”. Therefore to be registered as a non-smoker, individuals should be tobacco and nicotine free for over 12 months, including e-Cigarettes, nicotine patches and gum.

If I've quit, how soon can I see my premiums reduce?

To qualify for non-smoker premiums, you must be tobacco and nicotine free for over 12 months. As soon as you reach the year, contact your insurer and they'll do the rest! Though, at this point, it may be advisable to compare online life insurance quotes with other companies to see if there are any cheaper alternatives available on the market.



If you're interested in purchasing high-quality, affordable life insurance, visit Best Price FS today.

Four Forward-Thinking Ways to Lower Life Insurance

In a time of tight purse-strings, each and every one of us is looking to lower our monthly outgoings. Life insurance should be no exception: the value of being covered by a policy should be more evident now than ever, but that doesn't mean you should be sacrificing quality when cutting costs.

These four forward-thinking ways will help send you on the path to getting cheap life insurance, leaving more money in your pocket.

Tip #1: Go commission free

Commission is how insurance companies cash in on your policy, and this often hidden cost essentially inflates the price of a product. Why not burst their bubble and start getting more for less?

Buying through a broker offering commission free life insurance is an easy way to save over the long term. While you’re normally asked to pay a small, initial fee, this will be a one-off, and will work out cheaper compared to a commission-based premium. This way, you’ll have the satisfaction of knowing that your money is getting you the best quality cover available.

 

Tip #2: Be a cynical shopper

While a new cuddly toy may be just the thing you’re looking for, free fountain pens and reduced gym memberships are superficial rewards designed to catch your eye.

Although you’ll enjoy these perks initially, chances are you’ll be paying for these in the long run in some way or another, usually in the form of higher premiums. I’m certainly not telling you to say no to a free lunch, but don’t be drawn in by these offers unwittingly. Be insurance-deal detectives and do your research: some companies may be offering the same cover for a cheaper price in the long run, although minus the meerkat.

 

Tip #3: Set the right term

Mapping out your long term financial plans is part and parcel of the search for an insurance policy to suit you. Why take out cover for a 30-year period when you know that in 25 years’ time your outgoings will be greatly reduced?

Generally speaking, most people take out life insurance to last until they’ve paid off the mortgage, or until the children leave home. The financial stability following such milestones means that insurance cover may not be such a necessity. Therefore, working out just how long you need to be covered for can be an easy way to ensure unnecessary spending.

 

Tip #4: Stay on the ball

Lifestyle choices affect how insurance companies view you and your risk factor, and so changes for the better could save you a few quid.

You may finally give up smoking, lose weight, or even pack in sky-diving; either way, it’s most definitely worth letting your insurer know. They’ll expect you to provide evidence of these changes, so make sure you’re able to do so, but asking for a reconsideration could be a really easy way of curbing costs.

These tips will set you on the right path, so that next time you compare life insurance quotes, you’ll know how to get the most for your money.