When we think of life insurance, we think of senior citizens and parents: people who want something to leave behind for their loved ones. Life insurance plans vary from person to person and can be expensive. There are ways for everyone to save on life insurance, no matter what category you fall under.
Improve Your Health
While it may seem like obvious advice, improving your health is a good way to lower your life insurance expenses. Getting into better physical shape and losing some weight will save you a surprising amount. Check in every year or so to see if you can get lower rates based on your medical records.
Smokers pay nearly three times as much as non-smokers. It’s best to stop smoking for about two years before you tell your insurance provider you’re a non-smoker. Damage caused by cigarette smoke takes about seven years to heal fully, but providers are usually very generous when you can show a couple of years of progress.
Term Insurance is Cheaper
Temporary, or term, coverage is less expensive than the permanent plans. Whole life and universal policies cover your entire lifetime, but they may not yield as much as term insurance. Permanent plans are good choices for some people while temporary policies are good choices for most others.
Insurance policies are divided into categories, and price breaks separate them. For example, you’re looking at a plan that covers $230,000, and you notice there’s a break at $250,000. Ask about what you may be missing out on from the next tier of coverage. Most providers break their tiers into $250,000 segments, so it’s easy to compare insurance plans from other companies.
Yearly payments can save you money in the long run. Providers may give discounts to those that pay their premiums once a year instead of once a month. The initial cost is high, but the excess cost of making payments can add up over time. Try to get a quote early and save up for a big down payment.
Manage your Chronic Conditions
Keeping chronic conditions under control is difficult. They also raise your insurance premiums. Staying on top of your treatments and diagnoses can lower your premiums. Look around at many carriers to find the best deal; some providers offer better rates for certain medical conditions.
Buy Early if You Need It
Starting an insurance plan earlier in life is beneficial, but only if you need it. Having kids is a good indication of when to look into life insurance. The difference in premiums from a 25-year-old to a 35-year-old is about 25 percent extra. Look into various plans and providers to find an ideal time for buying insurance, especially if you plan on having children.
Buy What You Need?
Figure out what you need to be covered before you sign any contract. Take a look through the list of coverage a plan provides. You can cut corners if you don’t need full coverage. At the same time, keep in mind what expenses your dependents and spouse will have to cover on their own if something were to happen to you.
Also, think about how long you want your plan to last. Take your other financial endeavors into account when settling on the length of your life insurance plan. If your mortgage is paid off within the next few years, then you most likely don’t need a plan that lasts ten or 15 years.
Be calculated with your approach to purchasing life insurance, so you don’t end up paying for services you don’t need. If you need life insurance sooner rather than later, regardless of your condition, then try to improve your health. Check with your provider annually to see if you’re eligible for lower rates.