I can’t walk past a deal. I walk into my local shop and whatever they happen to have on offer that particular week always ends up in my basket. Whether it’s choosing a holiday, a car purchase, cans of 7up in the shop or your TV package. All of us are typically always on the look-out for a bargain. And if that bargain presents itself, it is often hard to resist.
This characteristic has carried itself into my professional life. Daily we look for better deals for our clients and we simply love finding solutions for them and their families that will improve their lot.
Continuing on our theme of life insurance as it is something that most of us have I think it’s important to highlight a few important points. Last week I concentrated on the varying benefits on offer. This week I am going to focus on price.
Life insurance is underwritten at the beginning of the policy term. It does not have an annual renewal notice like car or home insurance does so it is often just let run on and on. Without an annual reminder to hunt around for better deal it simply gets forgotten about.
A couple of things have changed regarding how the price of life insurance is calculated.
1. Firstly, and very importantly we are now living longer thanks to medical advancements which means that taking out a life insurance policy now compared to even 5 years ago is cheaper. Less people die young.
2. Secondly, there is a variety of providers operating in Ireland and considering that life insurance is a requirement in most households, they have become very competitive with each other. That means that in the last 5 years the price of life insurance in Ireland has been driven down significantly. Providers constantly offer discounts which last the full term of the policy. It often leads to decades of savings for a little bit of work now. Again, if you haven’t looked at your life insurance in the last 5 years, it’s likely that you are paying over the odds for your policy.
3. Thirdly, the EU wide gender directive which was introduced in 2012 outlawed discriminatory pricing in favour of females meaning that male prices have been significantly reduced since.
4. Finally, if you have stopped smoking or your health has improved at all since you took out your life insurance significant savings could be made.
These 4 reasons alone mean that it’s simply crazy to sit on your hands and not, at least, check to see if you can do better. Especially seeing as these policies can often run for 20 or 30 years so even a small saving over time really adds up. And regardless of how small a saving is, it is still better in your pocket. Always bear in mind too that switching your life insurance policy has no bearing on the mortgage itself and can be easily switched.
A recent Caledonian Life survey showed that 57% of home owners would switch their policy for a saving of €5 per month. In fact life cover today for a male compared to 10 years ago is up to 49% cheaper and for a female up to 27% cheaper depending on the policy type. Some are more expensive of course, but it’s certainly worth checking. So how do you check? Well, as an independent financial broker, we can check the various providers for you, or you can shop around the various product providers yourself.
As always we are happy to help if we can, just send me an email to email@example.com and let me know your situation, I’ll come back to you as soon as I can. Otherwise just give me a call on 01 -5240000 and we can chat through it with you.