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Save money by re-arranging your life and critical illness insurance

life insurance

As consumers search for savings in the face of impending increases in living costs, research by life insurance and protection comparison service Money-minder.com suggest you could save money by re-arranging your life and critical illness insurance with a discount broker. 


Ray Black of Money-minder.com says, “Unlike with car insurance, consumers do not regularly review their life insurance and protection but they should seriously consider comparing the cost of what they have now compared to rearranging their insurance with a discount broker. Over 15, 20 or 25 years the savings could be huge.”


Online discount brokers are a relatively new concept in the UK and anyone who bought their life insurance or critical illness policy through their bank or a commission based financial adviser or mortgage broker may well be able to get a much lower premium for exactly the same cover simply by rearranging their policy with a discount broker.


Where people arrange their life insurance or protection policies through a bank or financial adviser the customer wouldn’t usually pay a fee. However, the salesperson or their employer will generally receive a commission. To pay for this commission the insurers increase the premium so that effectively the customer pays for that commission across the entire term of the policy. Discount brokers charge a low fixed administration fee in return for passing the commission back to the customer in the form of considerably lower premiums.


Ray Black continues, “What a lot of people don’t realise is that even though they may have taken out a life insurance policy a few years ago they could be paying for the sales commission for the entire term of the policy. If you know the cover you want, if you are not too much older and your health and lifestyle has not drastically changed since you took out your original policy, there is a good chance you could get a lower premium by comparing insurers and rearranging your cover with a discount broker.”


  • If your health has deteriorated since you took out your original policy or you have taken up a dangerous sport or occupation you may find that your new premium will be higher even with a discount broker

  • Never cancel the old policy until you know the new one is up and running

  • Make sure the new plan offers the same level of cover with at least the same benefits as your old plan

Health insurance: News update: 2 August 2010