It is a universal truth that having a Life Policy is an important part of your financial planning, especially when you have dependents. Your Life Cover or Life Insurance can range from having a full bells and whistle policy that ensures your loved ones can continue in the same style as when you are alive or you may just wish to leave enough to cover your funeral. Either way, having a Life Policy should be a part of your financial planning, as much as having a pension, investing in your children’s education or just saving for a rainy day.

There are a couple of things you can do to keep the costs down and here at 3Sixty we suggest the following:

  1. Get it early

As Life Cover pays out in the case of a death, people always associate it with old age. However, any lump sum associated with Life Cover is much more important if you die young with dependents than if you die older. Presumably, this is when your children may be financially independent, your spouse may have pre-deceased you or indeed may already be in receipt of a fine pension.

In any case, taking out a policy while you are young is sound, prudent financial planning and is also much cheaper the younger you are.

  1. Work out how much you need

People tend to pick a figure almost out of thin air which bears little if any relation to the actual financial needs of your dependents in the case of your death. A good broker will examine your income and calculate a reasonable lump sum that would protect your dependents in the event of your death.

Also, you can insure both parties for different amounts depending on what income is needed to replace them in the case of each death. This can also lower premiums and will ensure you are only paying for what you need.

  1. Stay Healthy

This sounds like a trite comment but all Life Cover demands an initial medical. If you can stay healthy you will pay less.

There is another approach to keeping premiums down and that is to take out a Convertible Life Policy. Should you both reach the end of the mortgage without dying, this is a much cheaper way of extending another tranche of Life Cover. You may want to renew your policy to cover a smaller amount of any outstanding debts or to cover funeral expenses in the future. Not only will this new, extended policy be much cheaper, it also does not require a new medical. If you have contracted a life-threatening illness over the years, you can still afford to extend your Life Cover without being hit by huge premiums reflecting your current medical condition.

Life Cover

  1. Don’t Smoke

Easier said than done, but smokers are penalised heavily by the Life Insurance Industry. Indeed, the amount you smoke is not typically relevant with light smokers being penalised as much as heavy smokers.

Currently, people vaping are also treated in the same way as smokers.

Non-disclosure is also heavily penalised and may result in policies being null and void. So if you can, give up smoking before you take out your Life Cover.

  1. Reputable Broker

Finally, go to someone who can ensure you get the best possible advice in all areas of Life Cover. Matching the correct product to your needs will ensure the most cost-effective premiums as well as the best possible outcomes in the case of your death. You can’t plan for your death but you can plan for your dependents when you go.

Talk to your Financial Adviser about what your best financial options are. Visit us at www.3sixty.ie today.