We know how important life insurance protection is, especially if there are children who rely on us financially.

Despite inflation stabilising in recent months, the cost-of-living crisis continues to have a negative impact on family finances up and down the country.

During times like this many mums will naturally look to scale back on their monthly outgoings as the family purse strings are squeezed. As a result, it can be tempting to cancel paying your monthly life insurance premiums. After all, you never know whether you will actually ever need it in the future.

Unfortunately, as parents we must consider a worst-case scenario. If we were no longer around who would pay the mortgage or rent? Who would look after the children? How would we cover rising family living costs?

A safer alternative would be to ensure you have financial protection in place but consider different ways in which you can save on your monthly premiums to get yourself the best available deal.

We asked leading insurance broker Reassured to provide their top 5 money saving tips for UK mums.

1. Consider a joint life insurance

If your budget is tight, then it could be a good idea to consider taking out a joint life insurance policy. A joint policy could be up to 30% cheaper a month depending on your age and personal circumstances.

Joint cover, which is usually taken out with a partner, protects both lives simultaneously under a single policy. You pay one monthly premium. If either of you were to pass away, a cash payout would be issued to your dependents.

The downside of joint cover is that after a payout is issued, the policy elapses, leaving the surviving partner unprotected.

2. Write your policy in trust (avoid or minimise 40% inheritance tax)

This top tip will not actually save you money on your monthly premiums, however it could ensure that your loved ones receive the maximum pay out from your policy.

When you write your life insurance in trust, it is detached from your legal estate, meaning the proceeds are not subject to inheritance tax (40% over the £325,000 threshold), potentially saving your loved one’s thousands when the time comes.

You sign over the rights of the policy to a trustee/s to administer on your behalf, much like the executor of a Will. A trustee could be your spouse or the family solicitor for example.

What’s more, because the funds are separate from your estate, your dependents will not have to wait for probate to be granted (usually 9 months or more) before receiving a payout.

Writing your life insurance in trust is completely free, and all major insurers offer this facility. Despite this, it is estimated that only 6% of policyholders do this.

3. Factor in death in service benefit from your employer

If you work for a company, it is common to benefit from a death in service. This is usually a multiple, often three times, of your annual salary paid out if you were to pass away whilst in that role.

To save money on your personal monthly premium, you can reduce your cover amount by factoring in this work-placed benefit. Please note that if you change employer, this benefit will not travel with you.

4. Be proactive, take cover out while you are young

Your age at the point of application is the most influential factor in determining the cost of coverage. As a result, you could save a significant sum of money by taking out a policy in early adulthood and locking in a super-low premium for many years to come (up to 40 years).

The problem is that most people only consider taking out life insurance after a major life event such as getting married, having a baby, buying a property, or losing a loved one. Why not be proactive and lock in a low-cost premium for decades to come, saving thousands?

5. Take the time to calculate your term length and sum assured 

The greater your cover amount (known as the sum assured), the higher your monthly premiums will be. As a result, it is very beneficial to take the time to calculate exactly how much cover you need so that your premiums are not unnecessarily inflated.

Consider your remaining mortgage balance, family living costs, utility bills, funeral expenses, education costs, any personal debt and whether you plan to extend the family.

As well as your sum assured it is important to consider how long you need cover for (known as the policy term). The longer your term, the higher your premiums will be (as a claim is statistically more likely).

Take the time to think through how long you need cover for; until your children are financially independent and/or your mortgage is paid off are common considerations.

6. Try and live a healthier lifestyle

As well as your age, factors such as your smoking status, alcohol intake and weight/BMI are key considerations when insurers calculate your monthly premiums. For example, a 50-year-old smoker can expect to pay double that of a non-smoker for the same cover. This is because of the correlation between smoking and obesity with several medical conditions (making a claim more likely).

So why not quit smoking, lower your alcohol consumption, and try and lose a little weight to secure the lowest possible premium, saving you money and potentially improving your quality of life.

Please note, it is vital that you do not lie or withhold the truth on your application in order to secure a lower premium, this is known as ‘non-disclosure’ and could jeopardise a future pay out. It is also deemed a form of insurance fraud.

Summary

So, there you have it 5 top tips to help save money on your life insurance.

Life insurance is not the most glamorous of topics and it can seem a waste of money as you are paying into the policy each month not knowing whether it will ever even pay out.

However, for most mums, the reassuring peace of mind of knowing that your loved ones will be financially stable if you are no longer around to provide is absolutely invaluable. It ensures that your nearest and dearest can remain in the family home without suffering financial hardship at an already difficult time.

A healthy non-smoker in their early 30s could secure approximately £200,000 for 20p day, which one day could prove to be one of the best and most selfless investments you ever made.