Don't Assume That Joint Policies are Cheapest



Couples can save money by getting a joint life insurance policy that covers both of them in one plan. However, while joint policies might be a little cheaper than two separate policies, you're only getting half as much cover. The main problem with joint life insurance policies is that these plans only pay out once. So, when a claim is made after the death of one partner, the surviving partner is left uninsured and unprotected. Possibly at a time when the cost of cover has increased as the surviving partner could be five, ten or twenty years older than when the original policy was purchased.

Buying two separate policies costs very little more than joint cover, just a few extra pounds a month and, it provides protection for both partners.

Consider Income Protection Insurance Instead of Critical Illness Insurance

Income protection insurance provides you with a safety net that benefits you if you are unable to work, in the form of monthly payments until you are able to return to work. Why consider this over critical illness insurance? Simply because while critical illness covers you for only for very specific medical conditions such as cancer or heart attack, income protection covers you for any medical condition that prevents you from working in the long term.

Income protection insurance can be bought much more cheaply because you can choose a policy with a long payment deferment period. For example, if you know your employer's insurance will cover twelve weeks of sick pay, and you have savings that will last a further three months, you can safely choose a deferment period of six months, and reduce the costs of your cover.

Don't Get Payment Protection Insurance from Your Lender

Payment protection insurance is often sold as an option or add-on to life insurance plans and provides you with a way of making monthly payments on your mortgage, personal loan or credit card if you're unable to work due to unemployment, accident or sickness.

The biggest mistake you can make with this form of insurance is getting it from your lender, who will most likely charge you dearly for it. If you want payment protection insurance, buy it from an independent provider and remember to shop around.

Choose Guaranteed Premiums

Reviewable premiums might be worth considering for short term insurance, however if your premiums are reviewable every five years and you're on a long term life cover plan, you'll almost always find that those reviewable premiums will eventually cost you much more than guaranteed premiums would have. Reviewable premium policies allow the insurer to raise the premiums, usually every five years, and increase them at their discretion. Guaranteed premiums are fixed and cannot be changed by the insurer.

Get Quotes from Discount Brokers

Many traditional life insurance brokers now offer a streamlined, internet-only service for buying life cover if you know what plan you need and don't require advice. If you fit into that category, search for these brokers online and get quotes from across the market, often at discounted premium rates.