Expert: Go for shortest term with life insurance

By Marianne Straker, Tue 9 Feb 2010 - Published in Life Insurance

People can bring down the cost of their life insurance by attempting to make as short term as possible, an expert has said.

Kevin Tooze, managing director of independent financial advisor Equity Partners, recommended that people invest the shortest term life insurance policy which they can, as this attracts lower premiums.

"Try to make it the shortest term you possibly can. Obviously it's got to cover your needs - if it's a mortgage, around 20 to 25 years - but the shorter you can make it, the less you will pay," he explained.

The expert added that simple term insurance tends to be the cheapest on the market, but claimed some people can make further savings by using reducing term products - which drop the level of cover as debts fall.

In addition, Mr Tooze suggested that family income benefit is another cheap way of obtaining life insurance, as it pays a set amount for a certain amount of time if the insured person dies.

The Private Health Insurance blog recently noted that health cash plans are an effective way to pay for routine medical visits and examinations.

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