You are probably unfairly paying too much for your life insurance. Or maybe it's because it doesn't suit your needs well. Therefore, we give you four tips to save on your life insurance and get the price you really deserve.
In Spain, more than 21 million people are protected with insurance life. Most of these policies are risk life insurance, that is, they are activated when a death occurs. According to ICEA estimates (Cooperative Research between Insurance Entities and Pension Funds), each year in Spain between 65.000 Y 70.000 people who have these policies. In other words: 1 out of every 6 people who die each year in Spain has one.
The usefulness of life insurance makes it a very popular product among Spaniards. It allows the beneficiaries (children, spouse, parents …) to receive compensation if the client dies. For example, 3 out of each 10 out of 41 Y 50 one is one, according to data from Unespa, the insurance employer
They are also especially useful when there is debt, such as a mortgage. If the loan holder dies, his heirs would have to pay for the house. Every year, some 8400 families suffer the death or illness of a member that makes it difficult for them to pay the loan . But more than half (about 4800 a year) manage to afford the mortgage thanks to life insurance.
How much does it cost life insurance?
According to the data of our comparator, a person of 40 years can ensure 100. 000 euros for only 82 euros per year. And someone from 50 years can do it from only 249 euros per year. A coffee a day is already a much higher expense!
However, you may have heard that life insurance is much more expensive. You may know someone who is paying hundreds and hundreds of euros. Or that you yourself are paying much more than that and you have been surprised to see that budget. If so, these tips interest you.
What influences the price?
To save, you must first know what can raise the premium. Each company decides its own prices, but there are three variables that always influence the cost:
– Age. Something is less likely to happen to us when we are young. Therefore, the premium goes up a little every year.
– The capital . The premium is higher if we want to leave more money to our family.
– Coverages . They are all those unforeseen events that the contract includes. If we want to receive compensation also if we get sick and cannot work, for example, we will have to pay a little more.
How to save on your life insurance
1. Run away from bank policies
It is the most important advice to save on life insurance, since it is the main reason that many Spaniards are paying exorbitant figures. If you want to pay much less, do not accept the bank's policies and switch to a specialized company.
Many entities offer the option of taking out a policy with them. Sometimes, they impose it as a condition to give a loan or a mortgage, something that is totally illegal. Other times, they offer this insurance in exchange for a reduction in the interest rate of the loan. However, that «bonus» does not compensate , so these policies are never beneficial for the user.
The prices of bank policies are up to 80% higher than those of the insurers. And yet, they do not offer better coverage . They are a very similar product, but much more expensive. Therefore, choosing an insurer over a bank is the first of the tips to save on your life insurance. And, without a doubt, the one that will save you the most money of all.
2. Choose the coverage well
Life insurance covers death from any cause : a work accident, illness … Some include funeral and burial expenses . But also other additional coverage can be added, such as disability, dependency or serious illnesses. In the event of any of these events (and not necessarily death), compensation will also be received.
The more coverage, the higher the premium. Therefore, to save on life insurance you have to weigh what we want to protect . For example, it will not make sense to hire triple capital in the event of a traffic accident if you never drive. If that coverage is avoided and you choose only life and disability insurance, someone of 40 years would go to pay 715 euros per year to only 361 euros.
3. Choose the right capital for you
The third way to save on life insurance is to hire the right capital. The higher the compensation, the higher the premium. For example: a woman of 40 years will be able to hire 82. 000 euros from 82 euros. If you want them to be 300. 000, the price will be 246 euros.
How to know how much money to hire?
In our comparator, you have an option to be able to calculate how much money you need according to your circumstances. The outstanding debts (mortgage, credits…) and the money that you want to leave to your family will influence. To make a quick calculation, at least five years of full salary plus debts must be contracted . For example, if you charge 1000 euros per month and you have 50. 000 euros of mortgage, the ideal would be to hire at least 110. 000 euros. That's why you don't need to contract 500. 000 or 800.000 and overpaying.
If we compare and compare before choosing insurance for the car, a new refrigerator or a mattress, why not do it with something as important as life insurance? If all goes well, it will be a cost that will last for many years. A few euros turns into a lot of money after all that time. If you can have the same for less, why settle?
In our comparator you can see the offer of the main companies in the market. You just have to insert your age and the capital you want to hire. You can also filter your search to see only the coverages you want. In the highest position you will see the best price in the market and you can even hire it from there.
Another tip to save on your life insurance is stick to an annual budget. On our platform you can search for companies that do not exceed a certain price and adapt to the coverage and capital you want to pay .
Do you dare to put into practice any of these tips to save on your life insurance? Your protection and that of yours does not have to be expensive. If you have any questions, contact our advisors. Start saving now!