A vital approach to save money on your life insurance premium is to be proactive. There are some easy tricks you can use reduce the amount you pay. I love helping people save money and I am pleased to share our top tips with you:
All smokers, whether they use tobacco and/or marijuana products, are typically charged smoker’s rates. Which translates into about a 25% increase in your premium. That’s significant! So, even if you have a policy now, or are about to apply for one, you should seriously think about giving up the smokes. If you quit, after one year you can ask your insurer to reevaluate your policy. As a non smoker, you will benefit from a significant reduction in your premiums.
Improve Your Health
You might be experiencing medical issues involving high cholesterol, blood pressure or even type 2 diabetes if you are overweight and live a sedentary lifestyle. Improving your diet, and partaking in an active and healthy lifestyle will reduce your weight and lower both your cholesterol and blood pressure. Taking a more active approach to managing your health will significantly reduce the cost of your life insurance. If these lifestyle changes have been implemented for one year, request a medical reevaluation from your insurer. It’s likely you will obtain a better rating and lower premiums.
Don’t Buy More Life Insurance Than You Need
Don’t overestimate your life insurance needs. Buy only what is required in your particular circumstances. The bigger the policy – the higher the premium. The same applies to the length of the term you choose. Why buy a 30 year term when a 20 or 25 year term covers the period you need. Here’s another neat tip that many people don’t know about. Life insurers are in fierce competition, so there are “sweet spots” for certain dollar figures of coverage such as $100,000, $250,000 and $500,000. Buying slightly less life insurance may not be cheaper. Once you have a number in mind, you may find that you can save money by rounding up. Premium rates for certain levels of coverage often drop when you hit certain thresholds of coverage. Paradoxically, a $500,000 policy may cost less than a $490,000 policy.
Avoid Paying for Life Insurance Riders
Some agents will try to convince you to buy a life insurance rider, to give you additional protection. In some instances, this might be prudent, such as you have a risky occupation, to consider extra protection such as a “Disability Income Rider” – but, in most cases, there is no need for insurance riders. They are costly and seldom required. The only rider which you should consider is the “Term Conversion Rider” (available for term policies only). This rider allows you to convert your term policy to a permanent policy without having to take a medical exam. The conversion feature is beneficial because it allows you to continue coverage if your health deteriorates. Most term policies sold today automatically include this conversion.
Pay Your Premiums Annually
Many people pay their premiums monthly. This actually costs more money as the insurer charges administration fees on top of the premium to pay for processing your payment. Choose to pay a single annual rate. This will lower your premium because you will only be charged a single processing fee as opposed to 12 monthly fees.
Layer Your Term Policies
Instead of buying one large term policy to cover multiple purposes, you would be better off purchasing several policies for different amounts and varying term lengths. For Example: One long term policy for income replacement Another shorter policy for your mortgage A shorter policy for your children’s college education When you no longer need one of the policies for the purpose it was intended, you can cancel it. You will still have the others in place while lowering your overall premium cost.
FIND OUT MORE INFORMATION ABOUT THE COST OF LIFE INSURANCE
I don’t just sell life insurance to make commissions. I strive to provide you with a financial safety net at the best possible price. This process will enable you to obtain the life insurance policy that is most suitable to your unique financial circumstances, to protect the welfare of your family should something unforeseen happen.
I have access to over 20 of the top rated life insurance companies, which means I am able to provide some of the lowest rates in the business.
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