Twenty money saving tips

Save Money on Life and Mortgage Insurance

1. Check the type of policy you already have. Some are more expensive than others. Term Assurance is the cheapest form of life insurance. LABrokers quotes for this cheapest form of life cover https://www.labrokers.ie/life-insurance/.
2. Don’t buy a policy for a term of years that is more than you need it for. For example if your youngest child is 3 don’t buy a 30 year policy but instead buy a 20 year one.
3. Don’t buy policies with unnecessary add-ons. Many are of dubious value for money as it can be difficult to qualify making a valid claim.
4. Compare prices on the Internet. If you Google ‘Life insurance’ and ‘Mortgage Protection’ you’ll be off to a good start.
5. Give up smoking. You’ll save hundreds over the life time of the policy and according to actuarial mortality tables you’ll live on average 5 years longer.
6. Currently the most competitive providers for term assurance tend to be Aviva, Royal London and Zurich.
7. Many insurers have special offers – but only if you ask! LABrokers include all special offers in their quotes.
8. Some insurers operate what is called a price pledge. This means they will match a competitor on price to give you a cheaper premium.
9. Some brokers will give up some or all of their commission to give you a cheaper premium.
10. More insurers have special offers but not all brokers have them all of the time. For example Zurich will give an extra 5 to 10% off a monthly premium and they may throw in free cancer cover of €10,000 for just a cent extra. Royal London may offer an extra 10-15% off their premiums for qualifying cases (most customers)
11.  Should you choose to add an inflation option to your policy be careful, not all companies charge the same. Compare the total cost of premiums paid over the full term of the policy to see which company is offering you real value.
12.  Give up smoking. You’ll save hundreds over the life time of the policy and according to actuarial mortality tables you’ll live on average 5 years longer.
13.  Over 50’s cover may be ideal for persons who have a medical condition that otherwise makes them uninsurable.
14.  Two of the best financial and information web sites I’d have no hesitation to recommend are www.askaboutmoney.com and www.nca.ie. Go to the ‘Your money’ section.
15.  If an adviser recommends you to purchase a whole of life policy then beware there are guaranteed and non guaranteed products out there. Non guaranteed policies should be avoided as they are subject to review and in future years the premiums you pay can be increased or the cover reduced. They have received bad press because they tend to bomb out in later years and become unaffordable leading to people to cancel them before a claim is paid. Guaranteed whole of life policies are a different proposition and Aviva and Zurich would be considered market leaders in the field by many brokers.
16.  If you are self employed consider a life assurance product called ‘Pension Term Assurance’. You can save tax on premiums. Tax relief will reduce the amount you pay but sometimes these policies are dearer than ones without tax relief.
17. With your life insurance policy you can purchase an add-on called a conversion option. This is a very valuable benefit which could save you a fortune if you need another policy in later years and your health has suffered.  In fact I’d go so far as to say don’t buy a life insurance policy without it.
18.  If you have decided you need serious illness cover but find it too expensive then some insurance companies will offer Cancer cover only policies. They are cheaper  81% of Zurich Life’s female and 61% of male serious illness claims were cancer claims.
19. If you need financial advice consider going to an independent broker who deals with the widest range of insurers possible. A broker or adviser who deals with one or a limited range of providers may not be in a position to get you the best deal.

John Geraghty is director of online discount brokers LABrokers.ie

Save Money on Life and Mortgage Insurance. Mortgage insurance quotes here:  https://webquotes.labrokers.ie/WebQuotesMP.aspx  Life Insurance quotes here: https://www.labrokers.ie/life-insurance/