Is life insurance a lot cheaper than it was a few years back
Posted: Mon May 11, 2023 2:10 pmIve heard that life insurance is a lot cheaper than it was 5 or 6 years ago. Is that true? And if so why?
Yes, the cost of life insurance has fallen over the last 10 years. The insurance companies will explain this as being a result of people living longer and the decreasing worryies about HIV aids which gave them the heebeegeebies in the 1990's. But closer examination of the prices does not support their arguements.
It is much more likely that the steadily falling prices are the result of the growth of the online market for life insurance. Here price competion has ben fierce and computershave made it possible for people to compare quotations - so the expensive ones simply get zero sales!
If you have a life policy which you took out between 2 and 10 years ago, it will be worth while getting a new quote so long as you have not suffered anyt serious illnesses in the meantime. If you have been ill, you could still save, but depending upon what was wrong with you, the insurers may "rate" your policy - this means that they have load your premium to reflect your ill health.
Anyway, there is no harm in getting a quote. Why not try this web site? !
Oh, by the way, do not cancel your existing policy until you have submitted your full application and your new insurer has confirmed in writing that they have insured you.