Insurance is often taken out to have certain certainties in life and to cover certain risks. Especially financial security and the certainty that certain things are insured in unexpected events is important for many Dutch people. Although it is useful to take out insurance, you have to pay a certain premium to the insurance company or bank.
Similarly with a life insurance policy . You have different life insurance policies. For example, you have a funeral insurance policy and a term life insurance policy. The life insurance can be concluded in various forms and for all sorts of amounts. The higher the insured amount the more premium you pay. In many cases, a mortgage lender requires the taking out of a life insurance policy (term life insurance), in order to pay your mortgage at the end of the term. A funeral insurance is not mandatory when taking out a mortgage, but can be useful if you do not want your next of kin to have to pay for the costs of your funeral.
Unlike, for example, car insurance or third-party insurance, people often accept the premium level of a life insurance policy. Yet there are ways to save on your life insurance policy. There is often more possible than you think. Here are some tips to save on your life insurance.
Consider what you want before shutting down
When your life insurance is linked to your mortgage, you do not come under a certain amount. If you take out a life insurance policy independently, for your old age, for example, it may not always be beneficial to insure you for an excessively high amount. So think carefully in advance what the ultimate goal is and take some things with it that play in your life. If you are a single person without children, then a life insurance policy may not be necessary at all. After all, you do not have any immediate survivors, such as a partner and children, who also depend on your income. Even if you are cohabiting and married and your partner works, a life insurance of 100% of the value of the mortgage is not necessary and 50% is often more than sufficient. You can thus save on half of the premium.
Choose the insurance company yourself
You are not obliged to take out a life insurance policy with the mortgage lender. This is often done, but is perhaps not at all cheaper. Then also compare premiums with different insurance companies. If a life insurance policy is much cheaper than the life insurance policy that your mortgage provider offers, then you can safely close it. You may have to deal with two parties, but the advantage is that you pay a cheaper premium for a lifetime.
Close multiple insurance policies with an insurance company
It can be rewarding to take out several insurance policies with the insurance company where you have your life insurance, such as household contents insurance, fire insurance or car insurance. Many insurance companies give nice discounts on the premium if you have multiple insurance policies with them. Of course, you should not blindly take out any insurance and look at each insurance policy for which you are the cheapest. But if your insurance company does not offer expensive insurance and also a discount on several insurance policies, then this is worth considering.
It may well be that after a few years you pay premium for your life insurance you come across an offer from another insurance company where you are much cheaper. There are also plenty of comparison websites on the internet, in which you can compare insurances from different companies. Do this occasionally and see if you still pay an acceptable premium, or if your life insurance policy has become too expensive. Before you switch to a different company, it can sometimes help to inform your current society that you can be much cheaper at another society. Some insurance companies are sensitive to this and lower your premium or you negotiate a new price.