On 1st April 2017 The FCA will implement new rules aiming to increase transparency at renewal in the general insurance market. Life insurance doesn’t fall into this category as typically it doesn’t renew each year. However, customers could be missing out on huge savings by not doing so.
PayingTooMuch.com Managing Director Michael Ward says: “Should these new renewal notices not apply to life insurance as well. Why are life insurance companies so keen they don’t? In fact, I think they’d prefer you to forget about your life insurance policy, put it in the bottom drawer and just pay monthly without ever considering if there’s now a better deal!”
But we think people probably don’t know they can annually compare and change life insurance companies. Yes – there may be a little bit of paperwork involved, but the savings are definitely worth it.
Why would premiums reduce?
Reviewing your life insurance annually can lead to lower premiums for several reasons:
Too much protection
You may have been sold too much protection initially which you don’t need. Taking out a new policy for a lower amount will reduce the monthly premium.
Replace expensive bank insurance
Lots of people get very expensive life insurance through their bank – probably because it’s a well known brand and easy. But Rob Dales, head of life insurance at PayingTooMuch.com, comments: “I’ve spoken with literally hundreds of people who have been charged up to THREE TIMES the amount we would charge for the same cover. And this isn’t an exaggeration!”
Paid mortgage early
If you have paid off part or all your mortgage early, you will probably find you have too much life insurance cover. Reducing the sum assured will reduce your premiums.
Change job
If you’ve changed jobs, particularly if the new job is less risky than the old one, you may pose a lower risk to insurers.
Lifestyle changes
If you used to fly competition aerobatics, but have now given up, your insurance risk will have reduced, and so will your life insurance rates . Ok – perhaps a little far-fetched, but if you’ve given up competitive sports or are no longer taking part in risky activities, your life insurance cost will reduce.
Given up your motorcycle?
Some insurance companies will increase premiums if you ride a motorbike. If this happened to you, but you have now sold and moved to four wheels, you will be able to save.
Medical conditions
There are numerous reasons why reviewing your medical conditions could save you on your life insurance:
- Lower BMI from losing weight
- If a medical condition improves or you stop taking certain treatment
- Given up smoking
- Medical advice changes. If you’ve had life cover for many years, some conditions may have been downgraded due to medical advances. E.g. HIV/AIDS, diabetes and some cancers.
To get a quote, or to talk to Rob and his team, call 01243 219972
