10 Ways to Get Cheaper Life Insurance

Life insurance premiums are based on factors like age, health, and the amount of the death benefit. Consumers looking for adequate life insurance have to consider many things before committing to a policy.  Naturally, there are a number of factors that cannot be changed by policyholders.  However, others can and should be changed, because those alterations can result in cheaper life insurance premiums.

Tip 1: Stop Smoking

Smokers pay higher premiums for both health and life insurance since smoking can cause serious health problems and shorten an individual’s life span.  Cessation will  improve health, increase life span, and lower life insurance premiums in the bargain.

Tip 2: Lose Weight

Like smoking, obesity is associated with serious health risks and a decreased life span.  Unfortunately, this problem is even more prevalent than smoking.  However, policyholders who lose weight and improve their physical condition increase their life span and can get premiums.

Tip 3: Review Insurance Needs

Young people with families need extra life insurance to protect their families in the event of tragedy.  They could die or be injured, resulting in a loss of income. However, as children grow, the number of dependents decrease, so less insurance is needed and the death benefit can be lowered.

Tip 4: Consider Term Life Insurance

Although term life insurance policies have no cash or investment value, they offer the lowest premiums available on life insurance.  Those currently paying for whole life insurance may save on monthly premiums by switching to term life insurance.

Tip 5: Maintain a Good Driving Record

Since injuries caused in auto accidents are a major cause of death in the United States for people in all age groups, maintaining a good driving record can lower life insurance costs. Life insurance providers will check driving records and consider them when determining premium costs.

Tip 6: Get Physical

Applicants with a history of regular exercise are offered cheaper life insurance than those with a sedentary life style. On a life insurance application, include all physical activities like tennis or handball, and specify the amount of time spent exercising.

Tip 7: Maintain a Good Credit History

People with a good credit history get all the breaks, including cheaper life insurance. Credit history is considered a reflection of character and can also be an indicator of stress in a person’s life – and high stress levels lower life expectancy.

Tip 8: Join a Group

Group insurance rates are lower than the rates for individual policies, so consumers can save on insurance premiums by becoming members of a group. For instance, senior citizens who are members of AARP are eligible for group insurance discounts.

Tip 9: Get it Young

Buying a term life policy with a term of 20, 30, or 40 years at the age of 35 locks in lower premiums for the term of the policy, saving on insurance premiums which usually go up as people age. This guarantees cheaper life insurance for the term of the policy.

Tip 10: Shop Around

By comparing the rates and terms of different insurance companies, consumers can save hundreds of dollars.  Many websites offer a free comparison for the rates of several companies for consumers who register on their site; that makes comparing rates fairly simple.

The rules for saving money on insurance include improving physical health and presenting the lowest possible risk of premature death to the insurance company. As with most items, buying in bulk reduces cost, so joining a group which offers life insurance can also make cheaper rates available. The easiest way to reduce life insurance costs is to buy insurance when young and lock in low premiums for the longest possible term. Remember that it is possible to save money without sacrificing quality or service.

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