Let’s face it life insurance happens to be a necessary expense. It is like many other insurance products we need and use but want to pay as little as we can. However, think of it as a less painless way to save money for when you’re not around. That said, you can do a few things to lower your life insurance premiums as we’ll examine in this article.
How Much Life Insurance Do You Need?
Take a look at your finances and reconsider how much life insurance you will need. You will want to factor in expenses that your spouse, kids, and other dependents will be left with if you are not there. If you want to cut costs, you don’t want to buy more coverage than needed. The more life insurance you buy, the more you have to pay for it.
People who smoke or do drugs will often pay higher life insurance premiums instead of those who don’t and exercise to stay in shape. Obese or overweight people, on average, can end up paying three times more for the same life insurance as compared to a perfectly fit person of the same age. If you have recently lost weight since you purchased life insurance, then maybe try getting new quotes that may consider the healthier you.
What About Benefit Tiers
Once you know how much life insurance is enough, you will find that rounding it off can save money. As it goes, the premium rates for certain levels of coverage will drop when you meet a given threshold of coverage. For instance, a $500k policy may be cheaper than a $490k policy. So, you are better off rounding it off to $500k.
The Length of Your Policy
The term length of your policy matters a great deal. If your is to be paid off in five years, you don’t need as much money as you get with a 10-year term. So, shorten the term to pay less money.
Choose Term Life Insurance
Term life insurance is inherently cheaper than other types of life insurance. Sure, there are circumstances where a universal life policy is an option worth considering, but a term life insurance policy is best for most people. It can also be a lot cheaper.
Comparison Shopping Is The Key
Like buying any other product on the market, you will want to shop around to get the best deal. Thankfully, you can get a boatload of life insurance policy quotes online. You can then narrow down and shortlist all the quotes to the cheapest ones and offer you the most coverage. However, you will want to beware of exclusions. While on the surface, an insurance company may be offering the same coverage at a lower price, they may have exclusions that you’re not comfortable with.
You can also use one of the many insurance policy comparison tools that will help you find a good deal online.
Contact us today to compare quotes on life insurance