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5 Steps to reduced Life Cover costs

Looking to cut the cost of Life Cover

Quit SmokingLooking to cut the cost of Life Cover

If you are seeking ways to reduce the cost of your Life Insurance or Mortgage Protection, here are 5 useful suggestions.



1. Smoker /Non-Smoker

This is probably the quickest way to reduce the cost of your Life Cover. It is also probably the one step that will make the biggest difference. If you were a smoker when you took out your policy and have since stopped, this should have a positive effect on the cost as a non-smoker, rates are much cheaper than smoker rates. If you have a joint policy, even if one of you have stopped smoking, it is worth checking the price now. Talk with your provider, if they will not reduce the cost, you may have to change policies or move to a different provider.

2. Shop Around

The first thing to do when checking the price of anything is to shop around. This is never more true than with Life Cover Policies. There can be vast difference in prices between the companies. 
Don’t take advice on the cost of Life Assurance from an advisor who only deals with 1 or 2 companies. They are not going to tell you where there is a cheaper option if they don’t deal with that company.
Although the cheapest cover is not always the correct measurement to use, get advice from an advisor who looks at all providers.


Warning: If you thinking about changing your policy to a new one be careful and seek independent advice beforehand.


3. Correct amount of cover

You may need advice with this one but make sure you have the correct amount of cover in place. Sometimes you could be paying for more cover than you actually need.
There are ways to work out how much cover is enough and an independent financial broker will be able to help you with this.
Advice: Mortgage Protection policies should not be used for family protection. Mortgage Protection policies reduce the level of cover to coincide with the reduction of your outstanding mortgage balance. The amount of Life Cover needs for family protection, should be reflective of the income needs of your partner and family if you die.

4. Correct type of policy

There are a few different types of Life Cover policies and there are lots of difference ways to structure policies, so make sure you have the one that best suits your needs. Tax relief is available on some policies but not all. So again seek advice.
Advice: Pension Term Cover can be used in some circumstances to provide Life Cover; you can claim tax relief on the cost either at 20% or 41% relief depending on your tax bracket. This type of policy is not suitable for everyone nor in all circumstances but used correctly it is a great saving on the cost. This one needs advice. Terms and conditions apply to the tax relief available.

5. Extra Benefits

Check out if the policy covers any extra benefits that have a cost. If there is a cost for them, then you can decide whether you need them or not. If not talk with your provider and have them removed as this will reduce the overall cost. Some extra benefits don’t cost, so get to know your policy. 
Advice: Extra benefits could be.

  • Indexation: your cover increases each year without the need for medical evidence. The cost also increases.
  • Convertible Option. Allows you to convert your policy during the term of the policy to another policy without providing medical evidence. This is a great benefit if you need it.
  • Hospital Cash Benefit: Pays you daily amount if you are admitted to hospital
  • Accidental Cash Benefit: Pays you a weekly amount if unable to work due to an accident.
    These are just a few, there are more, so seek advice.


If you have any questions, please feel free to give us a call on 074 910 3938 or Email us

The above if for information purposes only and does not constitute financial advice in any way, we recommend that you speck with us before making any financial decisions. We recommend a holistic approach to financial planning and we can help you put your plans in place.

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