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Many people cut back on important protective insurance cover such as life insurance simply because of the cost of cover. Many others do take out life insurance cover but pay way over the odds on their premiums.
Recent data has revealed that the cost of life insurance cover is actually coming down due to a combination of tough competition between insurance companies and longer life expectancy for consumers, and experts now state that by shopping around and comparing different deals from a range of insurance companies some consumers could save a small fortune on the cost of this type of protective cover.
Of course, before switching insurance companies consumers should check their current policies if applicable to see whether they are actually able to switch policies without losing out, as some policies may contain a clause that affect the ability to switch providers. One research manager from an insurance brokerage in London said: 'If you bought a policy in the mid-Nineties, you might save money by switching, though you are less likely to save money by switching a five-year policy.'
He also added: 'If you have had any medical problems since you took out your first policy, you might not be able to switch. In any case, you should never cancel the old policy until the new one is in place. Beware also if you have written the policy in trust, so that the proceeds will be paid outside your estate. Rule changes mean the proceeds might be subject to tax. But this does not affect policies taken out before March 22 last year.'
Those that are able to switch providers and do want to save money on the cost of their life insurance cover could find it easier and more convenient to use a broker, who can review a number of deals from different providers in order to find one that suits your needs as well as your pocket.
Tom Smith
13.04.07
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