Most of us already have it or will consider getting life insurance at some point in our lives. Life insurance premiums can add up to a significant financial expense over time, so let’s have a look at some of the ways to keep its cost low.
1. Do your research.
Life insurance shopping should be approached with all seriousness. When choosing a policy that suits your specific needs, make sure to compare the product’s rates, terms for renewal and conversion, and company’s rating. To start off you can check the online quotes calculator on our website to get a rough idea.
2. Consider term life insurance.
Term life insurance is a no-frills product that usually comes at a low cost (your-monthly-cable-fee type of cost). This type of life insurance product would suit someone with a short-term need to cover a specific debt – for example, a low-income young family paying off a 20-year mortgage. Getting term insurance is easy and the premiums are quite affordable- just make sure you will have an option to increase or modify your coverage as your situation changes.
3. Re-qualify, not renew.
Every time you renew the same term life policy, your premiums will go up. It is in your best interest to start from scratch with a new policy to save on premiums – re-qualifying makes a huge difference. But if you become ill during the term it is better for you to seek ways of converting your term policy into a permanent coverage.
4. Get in shape and improve your health.
Don’t bother trying to hide that you are a smoker to avoid paying double the non-smokers premium. Insurance companies usually require quitters to remain nicotine-free from one to five years before they can qualify for non-smokers rates. Another major health factor under your control is weight. If you are overweight, you are more likely to be quoted at higher premiums as well. Overall, it is a good idea to show a history of improving your health condition or at least keeping your pre-existing medical conditions stable by acting responsibly.
5. Consider permanent insurance while still young.
The truth is the older you are the higher premiums you pay. So don’t procrastinate, rather qualify for one while you’re still young. You will find yourself with the best coverage possible later at a very reasonable rate! Most permanent policies offer enough flexibility for tweaking your policy to your needs if your circumstances change. There will be no need to buy more insurance because you can take out riders for additional protection, increase or decrease your amount of coverage and change beneficiaries; this leads us to the next tip.
6. Reassess your policy and buy only what you need.
Always examine your insurance needs as your term expires, or when you experience life changes such as a new baby, home ownership, a marriage or divorce or a change in income. It is also a good idea to request a premium recalculation if your overall health or a pre-existing medical condition has improved.
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