A Simple Way to Lower Your Life Insurance Premiums

Mike Valles By Mike Valles, 8th Apr 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/43ahyrla/
Posted in Wikinut>Money>Insurance

In most cases, you can get lower premiums for the coverage you have now. It is not necessary to continue to pay top dollar in order to remain covered with life insurance. Here are some ways you can save money and get a better deal.

You Can Save Money on Insurance

When money gets tight, it is not too unusual for people to dump their life insurance policies, thinking that it is an option that they really can no longer afford. Unfortunately, this thinking could cause them to be without life insurance when it will be needed most. In some other situations, people hold on to a life insurance policy only because they believe that they are already getting the best deal around – when in reality they could get a much better deal.

This is often true for those who are getting their life insurance through their employer. If this is where you get your life insurance, you may need to take a good look at it and evaluate the cost by comparing it with other policies.

Group Life Insurance May Not Be the Cheapest

When it comes to health insurance, there is little doubt that group insurance is clearly the way to go. Life insurance, however, may be a different matter, especially if you have had it with the same employer for a few years.

The premiums for an employer’s life insurance often rise each year. This is because it is based on the average life expectancy of those within the group; and if many of the employees have been there for a while, then the whole group is getting older and the premiums are constantly going up. Smokers and those with potentially dangerous hobbies or sports will also cause the rates to be raised.

What usually happens with an insurance policy through an employer is that the employer often pays a portion of it, and this is why it is usually the best deal around. The life insurance portion, however, may not be supplemented by the employer.

Shop Around for Better Life Insurance Rates

After you check to see exactly what your life insurance is costing you, you need to shop around and discover whether or not you can get better life insurance rates elsewhere. It is possible, in some cases that you could really save a bundle of cash – but you will never know until you start doing the comparison. By taking this simple step, some people have saved a couple of thousand dollars annually.

As you perform your research, you will quickly discover that life insurance rates will vary widely between insurers. This means that another company is bound to have much better prices than other ones.

Calculate your Needs for Life Insurance

As the years go by, your needs for life insurance will change. Perhaps you have had children born into your family, or you have been married – or divorced, or you may now own a mortgage – or just paid one off. At any rate, take a little time to consider your current needs for life insurance. It is quite possible that your needs have changed considerably and now it’s time to make some adjustments to your actual coverage. Or, you may be doing better financially than you were earlier and you would like to increase your coverage.

Do You Have Whole Life or Permanent Life Insurance?

If you have either one of these, which are actually very similar, then you certainly could get a lower cost for your life insurance coverage. The key would be to buy term life insurance. This type of life insurance costs much less than whole life – in fact – a lot less. With the same amount of money that you have been spending on a whole life policy, you could probably buy a lot more coverage with term insurance.

Get in Better Health

If you were overweight and smoking at the time you bought your current life insurance policy, then you can be sure that you were given higher life insurance rates. On the other hand, if you stop smoking and get down to a healthier weight, then you will be able to get better (lower) rates. Be sure to tell the truth on this, though, because a lack of honesty could cause your heirs to forfeit the benefits.

If you are going to buy life insurance, be sure that you get a new policy before you cancel the old one. You will usually have about 10 days to look it over before you decide to keep it. This is important because your new rates will be based on two things – your age and your present health.

Tags

Buy Life Insurance, Life Insurance, Life Insurance Policy, Life Insurance Rates

Meet the author

author avatar Mike Valles
Hi. I have been a full-time freelancer for over 9 years. Most of the material I write on deals with personal finances, education, and news. I am a published author with a book and several eBooks.

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Comments

author avatar writestuff
10th Apr 2014 (#)

Good information. Thanks for post.

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author avatar Mike Valles
11th Apr 2014 (#)

You're welcome. Thanks for stopping by.

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