How to Save on Life Insurance Premiums
Just as your needs on life insurance vary so do the ways that you can save money on your premiums. The most important way to figure out how to save money is to shop around before you buy any life insurance premiums. There are literally hundreds of different companies that offer life insurance policies and you need to look at all of them before settling with just one. Just by doing some comparison shopping you could save yourself hundreds of dollars per year.
Here are 9 more ways to save money on life insurance premiums:
Consider term life insurance – Whole life insurance basically forces you to save money, whereas if you consider term life insurance you can pay a lower premium while taking the money that you are saving and
invest in as you see fit in mutual funds or other investments
Seek out a no commission policy – No-load or low-load life insurance policies have fewer fees built into them such as agent commissions and fees for marketing that are surprisingly high. For variable life insurance the lower expenses of premiums mean a higher percentage of your premium goes to you right away instead of
building up over a longer period of time
Don't buy a guaranteed life insurance policy if you are healthy – Guaranteed policies are given to just about anyone no matter how sick or healthy they are. You aren't required to get a medical exam and usually have higher premiums based on that fact. They have a lower death benefit also because they assume that most of the people are sick and that is why they are choosing these policies.
Shop online first – While not all quoting services will give the very best quote available they are still very useful in getting general ideas of how much your premiums will be based on the amount that you need.
Improve your health – There is no question that the better your health, the lower the premiums will be. If you have chronic illnesses, if you smoke, or if you are overweight, the prices of the premiums will skyrocket. The best thing to do before getting life insurance is to get in shape because it will not only save your life but you will save money.
Don't buy more than you need – Use a formula that is basic but useful. Take your short-term needs, plus your long term needs, minus out the resources that you already have such as your house or business, and
you have how much life insurance you need. You should do an analysis every 3 years, or every time a major life event happens such as a birth of a baby. You may have less or more expenses depending on time and you don't want to keep more, or even less than what you really need.
If you need more life insurance, get a rider as opposed to more life insurance – A rider is an amendment to your policy that lets you expand your policy without sacrificing your built up cash value. If you are in good health though check around and see if you can get a whole new policy with smaller premiums, but in most cases adding a rider will be the better choice.
Buy your life insurance policy as soon as the need arises – The premiums are lower the earlier in age you buy it, so don't wait too long. Many term policies will allow you to renew your coverage without additional medical exams so it won't raise your premiums too much
Check your credit report before you apply – You could be denied a policy or have much higher rates if your credit is bad, so it is advisable to get your credit report in order before applying to get the best
It may take a little work on your part but there are ways to save money on your life insurance policies, you just need to know where to find the savings. If you follow these tips you'll be saving money in no time.