A small saving now can make a huge difference

When we buy insurance products, we have started to get smarter about the way we shop. Whilst brand loyalty, laziness and fear of the unknown would have stopped us from shopping around in the past, the advances of the internet have now made it so easy to find the best insurance prices, that we’ve got no excuse not to.

Long gone are the days of just accepting whatever renewal quote came through the door, and in are the days where we type in our details once, and get insurance quotes from over a hundred different providers in 30 seconds.

When you buy annual insurance policies, like car insurance, saving money each year on your car insurance renewal quote feels good, although it may only be £50 and is hardly life changing.

When you come to buy insurance policies that you’ll have for a longer period of time, making sure you get the best deal becomes a lot more important. Life insurance is one of those policies and many people buy a life insurance policy and keep it for 20-30 years.

When you have a policy over that length of time, making even a small saving now can make a huge difference over time. Most people will get a life insurance quote priced based on a monthly premium, and the difference between monthly premiums on paper may not seem much.

To work out the difference in price between the policies you need to multiply that difference in price by the number of months of the policy, so if you plan on keeping the policy the full 30 years, you’ll need to multiply the price difference by 360.

So if you’ve got a policy in front of you that costs £30 a month, and another that’s £37 a month it might not seem a great deal now, but over the 360 payments you’ll save over £2500, not money to be laughed at.

Life insurance is one of the most important forms of insurance you’ll ever have to buy, and it’s vital to make sure you get the right level of cover when you can. The earlier in life you buy life insurance, the less it costs, which makes a huge difference in the long run as well.

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