Life insurance is an important investment. It can be expensive, though. Save money on this valuable asset with several tips.
Shop From Financially Sound Companies
You can buy your life insurance policy from one of over 1,000 companies. Shop carefully to ensure the company you choose can pay any claims. The best insurance companies have high ratings from at least two independent rating agencies.
Get Several Quotes
After you find a few high-rated insurance companies, get several quotes. You’ll need to provide information about your health, and you’ll receive a class rating. The classes include:
Preferred (non-tobacco)
Standard (non-tobacco)
Preferred (tobacco)
Standard (tobacco)
Your rating determines your premium cost. Of course, you won’t know your exact cost until you complete a life insurance application, but these estimates give you a general idea of your life insurance cost.
Stop Smoking
Smokers pay up to double the amount non-smokers pay for life insurance. Quit and stay nicotine-free for 12 months to get better rates.
Lose Weight
Your weight can cause health issues like high blood pressure. Those issues affect your premium cost, so lose weight to qualify for a more affordable policy.
Choose Group Insurance
Employers, civic organizations and banks issue group life insurance policies. Look into this option as you save money on this valuable coverage.
Buy When you are Young
Young people are generally healthy. That means they typically enjoy lower life insurance premiums. Buy a policy when you’re young, and you get the best deal.
Consider the Net Cost Index
When purchasing whole life insurance, check out the net cost index. It helps you decide if you should buy a policy with low premiums and a low cash value or one with high premiums and a high cash value.
Look for a Renewal Guarantee
Term life policies often include a renewal guarantee that allows you to start a new policy when your current one ends. You won’t need to undergo a physical exam or provide other evidence of insurability that could cause your rates to increase.
Buy More Insurance
The cost of your term life policy might be cheaper if you purchase more insurance. Compare the premiums for several different amounts as you choose the most affordable policy.
Pay Annually
In most cases, you’ll pay less per month if you pay for the entire annual premium at one time.
Life insurance is an investment you should make. Instead of letting cost keep you from buying a policy, use these tips to save money and get the coverage you need.
