Buying a new home, starting a family, or thinking about retirement? Perhaps you’re thinking now is the right time to secure cover to protect assets and look after loved ones if anything were to happen to you.

Life insurance allows you to protect your finances for the future, ensuring that your mortgage is paid off, your debts are cleared and your funeral is covered if you were no longer around to provide.

This is a how to guide on what to consider when looking for life insurance in 2023, as well as some top tips on how to save money whilst doing so.

1. Lead a healthy lifestyle

Life insurance premiums are calculated based on health and lifestyle factors. The healthier you are, the cheaper your premiums will be.

For example, if you’re overweight, then life insurance may be more expensive due to the health risks associated with having a high BMI.

Insurers take into account your specific BMI reading during the application process. If your BMI is over 30 then this is likely to affect the cost of your premiums, but it may still be possible to get affordable life insurance.

Obesity is a global issue, often the root cause of shortened life expectancy, which is why your weight is taken into account when applying for life insurance. Life expectancy from long term obesity can be reduced by an average of 3 to 10 years (varying on severity).

If you develop any of the health conditions that are linked to obesity, it could make it more complicated to secure cover and your premiums will be increased further. Therefore, maintaining a healthy weight is even more important.

Leading life insurance broker Reassured have created this life insurance for overweight applicants guide for more detailed information

Not smoking or drinking alcohol excessively will also help cut down the price of your premiums.

So, if you are at the stage in your life where you are considering life insurance then why not make some positive lifestyle changes in order to help secure the lowest monthly premium.

2. Compare quotes

Comparing life insurance quotes is an excellent way of making sure you are getting the best rate for your policy.

Using a broker is the easiest and quickest way to help compare quotes that meet your budget and needs. Brokerages such as Reassured and Cavendish, specialise in finding the best policies for their clients from a range of providers.

It’s important to compare quotes to get the best available deal, especially if you have a medical issue, are overweight or a smoker, as quotes will vary significantly between insurers.

Insurers employ different underwriting criteria and therefore costs can vary significantly. What one insurer may deem ‘overweight’ or ‘high risk’ may different to another.

Lastly, a life insurance term can last up to 40 years and therefore even a small saving each month could add up to a significant sum over the entire lifetime of a policy. This is especially poignant at present when so many families in the UK are struggling due to major increases in the cost of living.

3. Secure cover sooner rather than later

Making sure you organise life insurance sooner, rather than later, can save you money. In most cases, the younger and healthier you are, the more likely you can lock in a low premium.

Unfortunately, as you get older, you’re statistically more likely to develop illnesses, which will affect your life insurance premiums if you delay taking out cover until later in life.

Even delaying buying life insurance for just a few years could mean paying a much higher premium in the future. Taking out cover at a younger age could mean you have more options available at a more affordable price.

So, if budget allows its best to lock in a super low premium in young adulthood which will protect you as your circumstances evolve over time.

4. Choose an affordable policy

There are many types of life insurance and there will always be a policy suitable for you, depending on what you want to cover.

Typically, level term life insurance and decreasing term life insurance are the cheapest policies.

• Level term life insurance – Provides loved ones with a lump sum pay out (sum assured), which maintains its value throughout the entire policy term, ideal for large expenses needing to be covered (such as an interest only mortgage).
• Decreasing life insurance – The value of the sum assured decreases over time; most commonly to help with the repayment on a mortgage as the sum assured can decrease in line with your mortgage balance.

Term life insurance is the most popular type of life insurance due to being cheaper, with some policies starting from just 20p a day for approximately £200,000 worth of cover.

It’s important to look at different policies as some types might be more affordable than others depending on your personal circumstances.

For example, whole of life insurance may be more expensive than an over 50s plan, especially if you have a medical issue. While both policies last for life, an over 50s plan could help you save money as it does not consider any medical factors during the application process and a medical exam is never requested.

Securing life insurance sooner rather than later and considering ways to minimise costs can help you to save money. Protecting your loved ones can put you at ease, knowing that they’ll have the funds they need to cope with unexpected costs should the worst happen to you.