9 Tips to Save on Life Insurance
There are ways to save money on life insurance. However, you must determine if the savings will cause you to compromise on a benefit that is important to you. Low cost life insurance may not prove to be in your best interest. Take a close look at the life insurance policy before purchasing to ensure that it truly meets your needs — there is no point in paying monthly premiums if the coverage isn’t what you need.
This section will help you find life insurance discounts and save on your policy:
- The number one rule for saving money on life insurance is to shop around. Make sure that you get at least three life insurance quotes. You will be surprised at the differences between the prices. Sometimes they can vary by hundreds of dollars.
- Keep an eye out for premium discounts for certain life insurance amounts. You may find that premiums are lower for $500,000 worth of life insurance coverage than for $450,000, depending on the deal.
- If you are changing insurance companies, it is best not to cancel your old life insurance policy until you have been confirmed as a customer with your new insurance provider.
- If you’re buying a term life insurance policy, ask for renewal guarantees. A renewal guarantee gives you the right to start a new term life insurance policy but without the requirement of a new medical examination or “evidence of insurability.” Without this guarantee, you will have to shop around again once your old policy expires. If your health has deteriorated, you may be charged higher premiums or have your term life insurance policy declined. Ask your insurance provider whether they give a term life renewal guarantee.
- Pay your life insurance premiums annually, as opposed to monthly or quarterly. Although paying your life insurance premiums monthly may be easier on your budget, insurance companies often charge higher fees for paying more frequently. This is usually due to additional administration and invoicing costs.
- Save on life insurance by taking care of yourself. Stop smoking, eat healthy foods and exercise regularly. If you are healthy, you are less of a risk to an insurance company. Therefore, you are usually rewarded with lower life insurance premiums.
- When searching for low cost life insurance, focus on insurance companies that are financially sound. This may not save you money on your insurance premiums but it will ensure that the annual life insurance premiums you have been paying will still be paid out if or when you need them.
- You should review your life insurance policy every few years to assess whether your coverage is sufficient. Your situation may have changed; this may include having children, your children leaving home, getting married or divorced. Contact your insurance company or insurance broker and ask them to provide a new quote.
- Once you have taken out a life insurance policy, keep it in a safe place. A good place to keep your policy is with your will or any other important legal documents. Let family members know where it is.