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Buying life insurance becomes as expensive as people age. However, that does not mean that people should refrain from fear of the high costs involved. In an industry where there are many players, one is always sure to get an affordable life insurance coverage well suited to underlying needs.
Below are some of the tips for saving on the life insurance bill.
Go With A Term Life Policy
For cost-conscious people, term life policy will always offer the much-needed cost savings. Designed to provide coverage for a predetermined period, term life insurance policies are a real savior, as they tend to be cheaper given the fixed premiums as well as the fixed death benefit.
Lower premiums as compared to whole life insurance policies is one of the reasons why term life insurance policies stand out, ideal for money-saving in the insurance world. Likewise, most people often take a 30-year term life insurance that offers sufficient coverage for the years that one might be paying mortgage or college education for kids.
Likewise, it would be wise to buy a term life insurance as soon as you need it. Premiums tend to be much lower when one buys coverage at a young age. As you age, coverage tends to be much expensive, given the increased risk of death.
As with any product, the only way one can be guaranteed of a good deal is to shop around. Likewise, when it comes to life insurance policies, it is important to get quotes from different insurance quotes for comparison purposes. The internet has simplified the process, as it is now possible to visit the website of various insurance companies and get a direct quote upon interaction with customer service.
Working with an agent also increases the chances of getting the best deal on a life insurance policy, given their vast experience and connections in the industry. Instead of requesting a quote after quote from insurance companies, an insurance agency would be able to scan the industry and come up with the best deal based on the needs at hand. Experienced agents are capable of identifying best-suited insurers based on clients’ health history and profile.
Once you find a favorable life insurance policy, find out whether it is possible to save money on paying full year premiums. The fact that some insurers charge fees for monthly billing often leads to higher costs of coverage. The fewer the premium payments made in a year, the likelihood of one ending up paying much less.
Disclose Health Issues and Agree To A Medical Test
Disclosing health issues upfront is a money-saving tip that most people take for granted. By disclosing issues upfront, you will get accurate quotes, thus saving yourself of surprises down the road. Retaining crucial information pertaining to health matters can pose significant challenges during the underwriting process and could result in higher premiums.
By disclosing health issues, your agent would also be in a position to match your needs with the most competitive insurer who is receptive to underlying health complications. Some insurers have proved to be responsive and accommodative to people with diabetes, let alone people at a high risk of cancer compared to others.
Accepting a paramedical exam can also go a long way in reducing the amount of money one ends up paying on life insurance coverage premiums. Opting for a non-medical exam has proved to be quite expensive to most people, as insurers must account for the added risk of not having a clear idea of one’s health status.
Premiums of people who refuse to take paramedical exams also tend to be much higher, compared to that of people who agree to a medical exam. In addition to taking a medical exam, it would be wise to improve your health and re-test a year later to see if the insurer will lower premiums in case of improved health status.
Buy Only What You Need
Just as is the case with any purchase, it is important to purchase only what you need when it comes to life insurance. In this case, you should ask yourself, the amount of money that would be able to cater to the needs of your beneficiaries when you are not around.
Insurance advisers and experts’ advice on carrying out analysis at least once every three years to ensure the needs are well aligned with the terms of the life insurance policy. If you have a newborn baby, you will have to factor in college education needs as well as childcare costs. Likewise, if you have taken a mortgage, you will also have to factor it and ensure that the death benefit on offer would be able to provide much-needed refinancing funds.
Just because your needs change down the road does not mean you go on buying a new life insurance coverage. If you need more insurance, ask your insurance company whether you can add a rider as opposed to purchasing a new policy. A rider will let you add extra coverage, consequently expand coverage without having to sacrifice accumulated cash value.
Improve Your Health
Health problems will always pose the biggest challenge when pushing for a desired life insurance coverage. Some of the health conditions known to trigger high premiums on life insurance policies include diabetes, high blood pressure, and heart disease. Smokers and nicotine users are also often hit with high premiums.
The fact that most of these diseases are because of extravagant lifestyle means they can be addressed with ease, consequently setting one to a path of good health. Upon taking a life insurance coverage, you should strive to improve your health if you are to enjoy lower life insurance premiums.
A record of improving health history can prompt an insurance company to reduce premiums given the reduced risk of death. For that reason, it is important to ask for a life insurance re-evaluation, if you feel your health has improved significantly to command a favorable deal.