Blog Homepage > 5 Mistakes thatâll drive up the Cost of your Life Insurance Policy
Mistakes happen, from the little to the large. Some mistakes you can shake off, but others may haunt you and you’ll spend the rest of your life hoping no one finds out about that one time you did that thing!
Whether you’ve already got a life insurance policy or you’re planning on taking one out, we’ve highlighted the five big mistakes you should try to avoid!
1. Telling a white lie on your life insurance policy application form
We strongly advise against telling any untruths or leaving anything out—even if you’re not so much telling a lie as stretching the truth or playing down a past illness or injury. Sure, it might not seem like a big deal, but honesty is always best.
Every life insurance policy is different, depending on the provider or the variables of the applicant. It might seem harmless to pretend that you’re in better health or are a bit fitter than you are, but always tell the truth as not doing so may mean that the insurance company will decline any claim you make on the policy.
2. Waiting too long to take out a life insurance policy
Many young professionals, in particular, aren’t too concerned about getting life insurance especially if they’re in good health, but if you leave it too long, you leave yourself or your family vulnerable if something were to happen. A life insurance policy offers real peace of mind and soothes any concerns you might have.
It’s also good to take out a life insurance policy when you’re young because you tend to be healthier and fitter, which will mean the cost of your policy will be lower. For eight reasons as to why we think it’s best to take out life insurance while you’re young, have a read of our blog post!
3. Living an unhealthy lifestyle
Poor health habits can potentially mean a more expensive life insurance policy. It makes sense if you think about it: a bad diet, smoking, and no exercise are signs that you might have health problems later in life. With the coming of the New Year, a resolution to start eating healthily could be on the cards.
Cutting out the smokes, exercising, and eating more healthily are great ways to improve your life—but also a solid way to bring down the cost of your life insurance.
4. Not reviewing your life insurance policy
So you’ve got a life insurance policy, great! Maybe you’ve been paying into the same policy for the last ten years and you’ve forgotten what your policy even covers. It’s always a good idea to have a re-read of your policy every few years or to check in with us for a chat. Your cover might have been what you needed five years ago, but circumstances change.
Maybe you quit unhealthy habits, lost a load of weight, injured yourself, or bought a new home. There are lots of factors to be considered, so get into the habit of reviewing your life insurance policy every few years!
5. Relying on work life insurance schemes
Some workplaces offer life insurance—which is great, but it’s just a starting point. Be sure to find out exactly what the life insurance policy covers. If it’s a bit lacking or doesn’t cover some extras that you need, get in touch with us and we’ll sort you out and fill in the gaps! Please also bear in mind that this cover is also likely to finish should you change employer whereas your own individual policy would carry on regardless of your occupation.