How To Save Money on Life Insurance

Life insurance is an investment that offers a safety net for your loved ones and peace of mind for you, but finding an affordable plan may seem a bit daunting. High cost is the reason why 42% of consumers have not purchased life insurance. But there are many ways to get a low monthly premium and still have the coverage you need.

These are four tips you can employ to help save you money on your life insurance policy.

Start Early and Lock In Rates

More Millennials and Gen Z are looking into life insurance, and that’s a good thing; one of the best ways to pay less for life insurance is to start as early as possible. Age is a significant factor in determining life insurance premiums, as the risk of health complications increases as you age. Securing a policy when you’re young and healthy allows you to lock in lower rates for the duration of your coverage.

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Maintain a Healthy Lifestyle

Insurers assess your overall health when calculating life insurance premiums, and the results can significantly impact your rate.

Adopting a healthy lifestyle that includes regular exercise, a balanced diet and the avoidance of tobacco products are key factors that contribute to lower premiums. In fact, being a smoker can actually double your rate in comparison to a nonsmoker.

Choose the Right Type and Amount of Coverage

Selecting a life insurance policy that best aligns with your goals is crucial, and sometimes a pricier policy doesn’t necessarily mean it’s the best option for you. Typically, you can opt to purchase either a term or whole policy.

While whole life insurance benefits are available anytime and have intrinsic cash value, term life insurance often allows you to purchase more coverage for less money. Because of this, a term life insurance policy is ideal for those purchasing life insurance with a budget in mind.

Compare Quotes

Life insurance quotes can vary significantly among providers, so taking the time to “shop” and compare is time well spent when it comes to your wallet.

When looking, consider factors such as coverage limits and exclusions, the carrier’s financial strength rating and what living benefits the policy carries (benefits the policyholder can access before a health event or death occurs) before making your choice.

Being proactive in your search allows you to make the best, most informed decision, leading to a good amount of savings over the life of your policy.

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