Save a few pennies with tips on how to save on your life insurance policy.
Just as there are different life insurance plans to meet your needs, there are different ways to save money on life insurance. Shopping for a policy can be a confusing and complicated process, but saving money doesn’t have to be. Most importantly is to determine if you need life insurance and what the best coverage is for you.
Check out the easiest ways in which you can save money on your life insurance.
Consider term life insurance. A term life insurance policy is set for a certain amount of time and pays out a lump sum if the policyholder dies during the policy term. As you only buy coverage for a certain amount of time, the premiums tend to be lower than permanent life insurance.
Buy life insurance young. An advantage to buying life insurance as soon as possible is that your premiums are lower. As you age, life insurance gets more expensive. Even if you’re young and healthy, if you have dependents, you should start to consider purchasing a life insurance policy.
Pay your bill annually.
Once you’ve found the best insurance policy for your needs, ask the company if you can save money by paying the bill annually. In general, the fewer payments you make over the course of a year (known as fractional premiums), the less you’ll pay overall.
Improve your health. If you don’t do it for the sake of yourself, maybe you should for your wallet. Health problems make it hard to buy life coverage. If you’re a smoker, you’re likely to experience high insurance rates. Even if you’re healthy but somewhat overweight, you may also be quoted higher premiums, too. Take control of your diet and lifestyle to better your health and improve your insurance rates.
Buy the coverage you need. Ideally, your insurance will cover your outstanding debts and provide your family with a reasonable level of income. Typically, the amount of insurance cover should be ten times the highest earner’s income. Ask your insurer for help determining the right cover for you and your family.