It’s understandable to look for alternative ways of saving money, especially in today’s society where living costs seem to be always going up. A way some people choose to save is to not purchase a life insurance policy because it’s seen as an unpleasant and unaffordable expense, but the reality is, people are often overestimating its cost.
You may think there aren’t any ways you could save money on life insurance, but you’d be very wrong. Don’t overlook getting life insurance because you’ll be putting your family at risk in order to save a few dollars. Instead, take a look at the strategies we’ve collected to help keep the costs of your coverage down.
Buy While You are Young & Healthy
This is perhaps one of the more basic and straightforward money saving strategies in regards to life insurance. It may not be a top priority for all younger individuals, but if you are planning ahead for the future, a life insurance policy is essential.
It’s no hidden secret that a life insurance plan is much more affordable when you are a young and healthy individual. Since you’ll be posing less of a risk for the insurance company, you ‘ll be able to find a plan with much lower premiums while still getting the coverage you need.
Avoid Guaranteed Issue Policies (If You’re Healthy)
Guaranteed issue life insurance sounds like an easy way to get coverage since it requires no medical exams or questionnaires, but you’ll be paying much more in premiums for the protection. Since these plans are more of a risk for the insurer, the price for coverage must be higher than traditional policies that are fully underwritten.
These plans are typically ideal for people with ongoing health issues and those who have struggled to get coverage in the past. The fact that a guaranteed issue plan also has a lower face value coupled with a high cost makes them less than ideal for healthy individuals looking to save money.
Buying Only the Amount You Need
Finding out the exact amount of coverage you need requires some important factors about yourself. You need to take into account your income, debts, final expenses, and your family’s financial needs among others when buying the correct amount of protection. Many insurers offer a life insurance calculation tool on their websites to make the process much easier on you.
After finding your ideal coverage amount and purchasing the policy your job isn’t quite over yet. It’s recommended that you typically revisit your policy once or twice every one to two years. This way if a large life event has occurred, like a home purchase or a new baby, you can adjust your coverage to match your new needs.
Cutting Back on Smoking and Getting Healthier
Smoking is obviously going to end up costing you more for coverage because of the risk factor that comes with the habit. Since smoking has so many negative aspects to it, insurers will need to charge you more to compensate for the risk you would pose. Quitting smoking will help you get back on track to getting better rates, but you’ll have to try and re-apply for non-smoker rates 12 months after quitting.
Just like a smoking habit, the unhealthier you are overall the more you’ll end up paying for insurance. Take small steps to getting on track to losing weight and living a healthier lifestyle so you can apply for more affordable coverage. Start adjusting your lifestyle and making the right choices to lose weight and you’ll notice the amount of savings you will incur when you do get a more affordable policy.
If you have health issues like high blood pressure, heart disease, and diabetes, there are ways to help improve your costs. Keep all records of your doctor’s visits and prescriptions to track your recovery progress. With your records at the ready, you can show your insurer that you are taking responsibility for your health and doing what you can to get healthy.
Work with a Brokerage
Shopping the market is easily one of the best ways to help ensure that you are getting the best policy at the lowest price. But going from site to site and insurer to insurer on your own may lead you to miss certain details and not find the right plan for your needs and budget.
By working with a brokerage you’ll have access to multiple insurers and a helpful agent that will help you narrow down plans and get you the best deal. Your personal adviser will also help explain any fine prints and answer any questions you may have about the coverage so you can make an informed decision about your life insurance.