How to Save Money on Life Insurance?

How to Save Money on Life Insurance?

For most people, life insurance is a pocket-draining pursuit. The premiums usually end up being too pricey midway, resulting to either losing your policy because you can’t afford it or willingly terminating it to reduce your personal expenses. 

However, life insurance can be affordable, and you can get the most out of it by paying relatively low premiums. As long as you know what you are looking for, your life insurance doesn’t have to be that expensive. There are so many ways you can save cash on life insurance and still get enough coverage for all your needs. 

Hence, the following are some of the tips on how you can save your money on life insurance.

Take the Medical Exam

A lot of people skip the medical exam to avoid the long wait than end up regretting not taking it. While a medical exam might extend the waiting period, it is worth it. The main reason why a medical exam is encouraged is because it is used to determine the amount of coverage you get.

When you are healthy, then you are considered a low-risk individual, so you pay lower premiums than someone who has health issues. Some of the health problems that may limit your life insurance coverage include chronic illnesses like cancer, arthritis, and diabetes, just to mention a few. 

Also, smokers pay very high premiums when compared to non-smokers. If you are a smoker, you will only be able to qualify for non-smoker rates if you can refrain from smoking for at least a year or even two for other companies. When you quit smoking, your health improves and this comes with better policy rates. 

The bottom line is, don’t skip the underwriting process. Take care of yourself by staying fit and developing good health habits. Your bank account will thank you for it when you decide to purchase life insurance.

Consider Term Life Insurance

You can also save money on life insurance by purchasing a term life policy. A permanent life insurance policy provides a cash component that acts as a savings component in addition to the death benefit and lifelong protection. On the other hand, term life insurance does not provide the cash component and protection only lasts for a certain period of time that does not exceed 30 years.

Here is what founder of InsureChance, Mack had to say “This is what makes term life insurance affordable. Some agents will try to sell you permanent policies just to enjoy the high commissions they come with.”  And the truth is, you might not need a permanent life insurance policy. Instead, look for a term life insurance products that covers all your needs and buy that instead.

This will save you a lot of money you would have ended up spending on a permanent life insurance policy you don’t need. 

Buy Now

When it comes to life insurance, buying sooner is better than later. A lot of people opt to get their life insurance later when they hit their 40’s than when they are in their 20’s. Postponing life insurance is saying no to lower premiums then choosing to pay them when they go up in price.

The best time to take out life insurance is now, whether you are in your 20’s or not.

A 20-year-old is considered healthier than a 40-year-old, and a 30-year-old is considered healthier than a 50-year-old. Point is, a younger individual will pay lower premiums than an older one who is considered a high-risk individual. People in their old age are more susceptible to chronic illnesses and other health problems than younger individuals.

As a result, the life insurance premiums you pay will be considered by your age, so buy now to avoid higher charges later. 

Only Buy What You Need

Don’t just buy life insurance blindly, buy whatever you need and nothing more. It doesn’t make sense when you pay for a very expensive coverage while you only need a percentage of the policy benefits. 

Before setting out to look for a life insurance policy, first establish your needs. Determine what your current expenses, needs, and financial capacity are. Afterward, will you be able to afford a life insurance policy? You don’t want to pay for a policy that will empty your pockets now for coverage more than what you will need later. 

Why are you buying life insurance? This should also help you determine the amount of coverage you will need and what you have to pay for now.   

Shop Around

There are a lot of life insurance products in the market today, and this is something you have to take advantage of if you want to save money. Each insurer offers different products that are priced differently. Before buying, first look for the available options depending on your needs then compare them before deciding on what to pay for. 

If you are buying through an agent, then make sure that they are working with different insurance companies. If you choose an agent who is working with one company then your options will be limited. A good agent should be able to provide you with a list of different insurance carriers. What’s more, they should be in a position to advise you depending on your current situation as well as your insurance needs. 

Also, if you have a health condition that restricts you from getting the normal rates, then you insurance agent can help you shop around for an affordable product, considering that some companies provide coverage only for individuals with medical and health problems. 

So, the more options you have at your disposal, the easier it will be to get an affordable policy. 

Do Your Homework Well…

You don’t have to be among those who always complain about how expensive life insurance is. Understand that every insurance policy is made different from the other with regards to the terms, and the costs. Analyze each of the different options you have and make inquiries if you have to, just to get a clear picture of what they are offering. The more you understand what is on offer the more advantage you have to select what’s best for you and the best rates. 

David Robertson