1.Shop Around

Currently insurers are very eager to get business from other insurers, and already leading up to the virus outbreak, have been reducing rates on life insurance. If you have not had any major health issues since the last time you were underwritten, you will most probably be able to save around 10% of your current premium for benefits you now have.

2.Remove ‘Nice-to-Haves’

There is a broad array of additional values ad’s and reward programs which are available in addition to the standard death, disability, and severe illness benefits. Each of these carry a premium. When deciding on areas to reduce premiums, significant savings can sometimes be achieved by removing non-essential benefits.

3.Swap lump-sum for monthly pay-out benefits

Most life and disability insurance is paid out as a lump sum to the insured or the beneficiaries. From a cash flow perspective, this carries a higher risk the insurer than if the benefit was to be paid as a monthly income. This allows insurers to reduce the premium for the same amount of cover. It has another benefit, where the beneficiary is assured of a set income in line with inflation without having to worry about investment of a lump sum to ensure lifestyle is maintained.

4.Update your profile

Particularly if you have had a policy for a long time, you may have qualified for another level of education, which puts you in a lower risk category and therefore a lower premium. Also you and/or your spouse/partner, may have had significant income increases in this time, which also puts you in a lower risk category and therefore a lower premium.

5.Change annual compulsory increases

Most policies have a built in annual increase in benefits and premium. By lowering benefit increases, this would lower the related premium increase. As a last resorts – most life insurers have offered payment holidays over the next few months. Some allow minimal benefits to be kept, others won’t give you any over the period which is why this would really be a last resort. Similar to this other insurers have offered a reduction/cancellation of benefits for up to 6 months where the reinstatement of the benefits will not need to be fully underwritten again (medicals, questionnaires about health etc.)