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Life Insurance premiums can seem a little confusing, but in reality they’re a piece of cake.

Just like any other insurance quote, the price will depend on a range of factors. In their simplest form, premiums are calculated based on the likelihood of your death within the duration of cover you’ve chosen.


The more likely this is to happen, the higher your premiums will be, meaning that everything from age, gender, health, lifestyle and even occupation are taken into consideration when calculating your quote.

The less statistically risky you are to die, the more favourably you’ll be viewed as by insurers. So if you’re a 29-year old non-smoker in good health, you’re in luck – your premiums will be more than affordable. However if you’re nearing 50, overweight, smoke, or drink excessively, your higher risk will be reflected in higher premiums.

The same applies to the size of the payout you’ve chosen – the larger the lump-sum, the bigger the risk the insurers are taking on you. They’ll have to account for this added expense, so whether you’re young, old, a smoker or sky-diver, if you’re asking for a lot, they’ll ask a lot of you too.


Can you lower your premiums?

Good news – it’s possible, and easier than you might’ve thought. Quitting smoking, reducing your alcohol intake and in general, becoming a bit healthier are all very achievable ways of seeing your premiums plummet, as is getting to grips with your financial situation. Knowing exactly how much and how long you need to be covered for is worth its weight in gold – it’s pointless paying for more cover than you need.

Above all however, it pays to shop around. Insurers calculate risk differently and therefore will view some traits as less risky than others. So whilst your penchant for paragliding might cost you a small fortune with one insurer, it may cause little or no difference with another.

Don’t limit yourself to comparison sites either. As revealed by Money Saving Expert, many of these sites have deals with providers and prices can vary depending on which one you visit. Better yet, try comparing quotes with a discount broker instead.


Discount Brokers

Money Saving Expert have hailed them as one of the cheapest ways to buy life cover as, unlike traditional comparison sites, they reinvest the commission they would receive to provide you with a lower premium overall. They’ll charge a one-off fee – usually £20 – to begin with, but this is soon offset by the amount you’ll save in the long term. Therefore it’s worth checking them out to see how your quotes compare.

These simple steps can help make sure you get the cover you need, all at a palatable price. Take a look at this blog post for more hints and tips, and if you’d like to compare commission-free quotes with us, click here. We provide life insurance quotes from the UK’s leading life insurers, all at the touch of a button.