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How to Choose the Right Level of Cover Without Overpaying

Updated for 2026 · 6-minute read

We all want the peace of mind that comes with knowing our family is safe. But let us be honest: nobody wakes up excited to pay an insurance premium. Here are four insider tips to help you find the balance between too little and too much cover.

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One of the most common questions we get at CHFinance is: How do I get the cover I need without spending a fortune?

The answer is not just about finding the cheapest policy; it is about structuring your policy correctly so you are not paying for cover you do not actually need.

Scale balancing debt and policy
Tip #1

Match the Policy to the Debt

If your main goal is to cover a mortgage, the type of policy you choose makes a massive difference to the monthly price.

  • The mistake: Many people take out Level Term Assurance (where the payout stays the same forever) to cover a repayment mortgage.
  • The fix: Use Decreasing Term Assurance. As you pay off your mortgage, the amount you owe goes down. This policy tracks that decrease.
  • Ask yourself: Why pay for £200k of cover in year 20 if you only owe the bank £50k?
Hourglass and coins representing deferral period
Tip #2

The "Deferral Period" Trick for Income Protection

If you are self-employed, the cost is heavily influenced by how soon you want the policy to pay out after you fall ill.

  • Day 1 cover: Very expensive.
  • 4, 8, or 13 weeks: Significantly cheaper.
  • The strategy: If you have savings for two months, set your policy to kick in after 8 weeks. You keep the long-term safety net but slash your premiums.
Office building with protection shield
Tip #3

Do Not Double Up on "Death in Service"

Before signing up, check your employment contract. Many UK employers offer 3x or 4x salary benefits securely.

  • How this helps: Top up what your employer provides rather than covering the whole amount yourself.
  • Caution: If you change jobs or become self-employed, you usually lose this benefit, so a personal baseline policy is still vital.
Medical cross protected by shield
Tip #4

Critical Illness: Some is Better Than None

Critical Illness cover is pricey because you are statistically likely to claim on it. But do not scrap it entirely.

  • The smart move: Consider "Severity Based" cover or simply reducing the amount.
  • Having £25,000 to pay bills while you recover for a year is infinitely better than having £0 because the quote for £200k was too high.

Stop Guessing, Start Calculating

Finding this balance is tricky to do on comparison sites, which often push standard options. Our advisors look at your specific debts, savings, and employment benefits to build a policy that fits your life and protects your future without restricting your current budget.

How to Get Started (The 3-Step Process)

3-step process illustration
  1. Fill Our Quick Form: It takes just 30 seconds.
  2. Consult an Adviser: You will be allocated a qualified adviser who will provide advice tailored to your financial circumstances.
  3. Select Your Cover: Once you are comfortable, we handle the paperwork to get your protection secured.

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