8 Smart Tips for Saving Money on Life Insurance

May 25, 2022

Auto Insurance

8 Smart Tips for Saving Money on Life Insurance

One of the most common myths about life insurance is that it's too expensive. However, there are different types of low-cost plans available. Also, there are various ways to make the life insurance affordable, and in this article, we will be sharing a few of them to help you save money on your policy.

How to Save Money on Life Insurance

  1. Choose term over permanent insurance

    Term life insurance costs less than a permanent plan because it doesn't offer as many benefits. However, if you're young and single, you don't necessarily need a permanent plan right away. You can eventually convert a term plan to a permanent plan.

  2. Buy your policy now!

    The younger you are when you buy life insurance, the lower your monthly premium will be. If you wait until you're in poor health, it will cost more. Some plans let you lock in a guaranteed low rate at a young age.

  3. Engage the services of an agent who can get quotes from different insurers

    You'll save plenty of time by letting an experienced life insurance agent provide various quotes for you from different insurers. The agent can narrow down the list faster for you based on your needs.

  4. Disclose all health issues upfront

    It's important to be honest on your life insurance application about your health conditions and history. Give accurate information and disclose any details of even minor health issues such as insomnia. By providing accurate information, an agent can better direct you toward plans that match your needs. Falsifying a life insurance application can lead to charges of fraud and penalties.

  5. Quit smoking

    Studies show that smoking tobacco is unhealthy, raises health risks, and has a huge impact on life insurance premiums. There is no question it contributes to lung cancer, one of the leading causes of death in the United States. If you smoke, you'll be paying higher premiums than if you don't smoke. Once you are tobacco-free for at least 12 months, you can request to switch to non-smoker status and see a reduction in your premium.

  6. Get tested

    Some life insurance policies give you the option to take a medical exam. If you bypass the exam, you may pay more, whereas taking the exam usually means paying a lower premium. If the insurer lacks a comprehensive profile of your health, the company is taking on more risk, which accounts for the higher price. Since taking the exam mainly involves putting in the time, it's worth it to get a lower premium.

  7. Pay annual premiums

    You can get a break in cost if you choose to pay your premiums annually instead of monthly. All you need to do is put the money in a savings account. You can enjoy savings of as much as 8 percent when bypassing the extra fees insurers charge for monthly premiums. Even if you borrow the money once a year to make the payment, you can still realize savings if you repay the loan on time.

  8. Seek a guaranteed level term premium

    This type of policy ensures a fixed rate, so you won't have to worry about a surprise increase during the policy term. The cost will go up the more you age without a plan, so it helps to lock in a guaranteed rate when you're young. You won't have to worry about rates increasing the older you get.

These are a few ways in which you can save money on life insurance. Contact us today at Spotlight Insurance Agency to learn more about what life insurance can do for you and your family.

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