This article will cover some helpful tips on how to save money on life insurance.
Life insurance is a very important type of insurance policy, and enables us to provide our loved ones with valuable financial security in the event that we die unexpectedly. Life insurance is designed to pay out a lump sum to the named beneficiary in the event that we die within the term of the policy (subject to exclusions and conditions), which gives our loved ones one less thing to worry about at an already stressful and upsetting time.
There are many different life insurance policies and as such there are many ways that you can make savings when it comes to getting a life insurance policy. The best advice when it comes to purchasing your policy is to shop around for the best deal; there is no better way than to use the internet if you want to make savings on your life insurance.
Shopping online for life insurance will allow you to gain access to a huge amount of insurers, as there are many; all insurers are competing against the other for your custom, which goes a long way towards helping you save money.
All insurers will allow you to get an online quote and compare quotes, which mean that at a glance you can see which seems to be the best deal. However always make sure you look into what the policy offers because sometimes a great deal isn’t so great after reading the exclusions and small print.
Always go for financially sound companies when investing on life insurance
Almost all companies these days sell life insurance. So, it is better to narrow down your search by going for only companies having good reputation in the market. Do not get lured by companies offering low premium rates. They may turn out to be a bad choice in the long run.
Look into group insurance
Employer sponsored life insurance are perhaps the safest bet. It is advisable to go for it even it require you to shell out a few bucks from your own pocket. Employers of reputed corporations generally provide a subsidy on group insurance costs making it less expensive than individual life insurance. Make a comparison on group and individual rates while taking into account certain factors like health status, age etc.
Live a Healthy Lifestyle
A great way to make savings on life insurance is to be as healthy as possible to start with when taking out the insurance. Here a little common sense needs to be applied, for instance if you are a smoker or drinker then you can expect to pay more for your life insurance than you would if you didn’t smoke or drink, this is the ideal opportunity to give up those nasty habits.
Being severely over weight can also add to your premium than if you were the average build for your height. Again making adjustments to your lifestyle and diet and losing weight can not only improve your health but also leave you with a little extra cash in your pocket due to lower premiums.
Any pre-existing medical conditions can also raise the premiums on your life insurance although these always have to be declared at the time you take out your insurance.
However by doing all you can to help your condition such as taking regular medication and attending regular check-ups at the Doctors or clinics will help when you do declare your condition.
Paying premiums at small intervals is not a good money-saving tactic
Paying your premiums at small intervals may cost you much more than paying once every year or once every half-year. Don’t take out more life insurance than you need to, by taking out more insurance you will be paying a higher premium.
Get a good rate for yourself
Finding yourself a good rate may be a daunting task for you as many companies essentially offer different rates for the same policy.
It’s advisable to look for renewal guarantees. So, that after the current renewal ends you are able to start a new term and in the process save money.
The cost of life insurance can vary based on factors such as the level of cover taken, your age, your medical history, your gender, and your lifestyle. There are certain factors that can really push up the cost of life insurance, and making some changes can help you to keep costs down considerably. There are a number of steps that you can take to try and keep life insurance premiums down:
1. Give up smoking
If you are a smoker you will be classed as a high risk customer to a life insurance policy, as the chances of contracting a life threatening disease, such as cancer, are vastly increased. By giving up smoking for at least twelve consecutive months you could enjoy a healthier lifestyle, save a fortune on the cost of cigarettes, increase your life expectancy, and reduce your life insurance premiums.
2. Improve your diet and exercise
Anyone that is seriously overweight will also be classed as an increased risk to life insurance companies, as this is a condition that can bring with it a number of serious and potentially life threatening problems, such as increased risk of heart attacks. By making improvements to your diet and stepping up the exercise you could start enjoying a better lifestyle and you could reduce the cost of your life insurance premiums.
3. Turning vegetarian might help
Although vegetarianism is not something that all life insurance companies take into account when setting your premiums, there is now life insurance available that offers reduced rates to those that are vegetarian or that eat only fish.
4. Make sure you compare a number of policies
Cutting the cost of your insurance cover isn’t all about your personal circ*mstances and lifestyle. You also need to remember that the cost of cover can vary widely from one insurance provider to another, so make sure you take the time to compare a number of policies and see which one offers the best value for money.
5. Choose the most affordable policy
The cost of your premiums will also vary based on the type and level of cover that you take. For instance, term life insurance cover will be cheaper than whole of life insurance cover. Select your policy based on the amount that you can afford to spend on premiums, but do be careful not to underinsure, as you could otherwise end up paying premiums on something that your loved ones will not really benefit from ultimately.
There are different types of life insurance available, and a choice of levels of cover depending on your needs and circ*mstances.
Getting the right kind of deal and saving money by buying a life insurance may turn out to be a messy affair if you do not take proper precautions before venturing out to find the deal that suits you best. It is a good idea to get some handy tips from an industry insider so that you do not fall in a financial trap.
Saving money is all about making then right moves at the right time. So, throw all your financial worries at bay and invest on life insurance only to gift yourself and your family a life worth living.
Photo credit: 401(K) via Flickr CC
