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Tips to Save Money on Life Insurance

Life insurance helps those you leave behind cope better with the financial burden your death may bring about. It is an essential expense that many people avoid because of cost. This should not be the case. There are ways that cost can be reduced without sacrificing coverage. Here are five tips to help you get the lowest life insurance quotes.


Shop Around
If you’re planning to buy your first policy or replace your existing coverage, the best way to save money is by shopping around. You shouldn’t make decisions based on commercials and fliers. Get quotes from different insurance companies and compare them. Many sites have tools you can use to compare quotes and features, saving you time and money.


Choose Term Coverage
There are two main classes of insurance, 'whole life’ and 'term’. Whole life insurance offers lifetime coverage and is therefore guaranteed to pay out. It also has a savings portion, known as cash value, which you can access in future if need arises. Term insurance offers coverage for a certain period such as 10 or 20 years. Its premiums are generally lower than those for whole life insurance. Some companies that offer products such as AARP life insurance can be incredibly affordable for persons age 50+. It's all about the target market for the company.

The longer the term you buy, the less it costs annually. This implies you’re worse off buying a policy that renews every two years than buying one that covers you for 20 years. A 30-year term policy should adequately cover the years you have many goals with specific time limits such as paying off a mortgage or paying for college tuition. You can save more money by purchasing a policy in your 20’s or early 30’s rather than in your 40’s or 50’s.


Take the Medical Exam
Many companies offer guaranteed-issue life insurance policies that provide coverage without you having to take a medical exam. These no-exam policies may sound convenient but may cost far more than exam policies (or “fully underwritten” policies). The premiums of the first few years may be much more than the amount of money your beneficiaries will receive. Taking the life insurance medical exam offers your insurer a more comprehensive representation of your health and lifestyle. It pays off in lower premiums.


Pay Annually
This is an important but often looked tip for saving money on life insurance. Companies usually charge a little more if you pay your premiums on a monthly basis. When you pay less frequently, you get price breaks. You get most savings by paying your premiums annually. The second lowest premium is the semi-annual premium, followed by the monthly and quarterly premium.


Get Healthier
When it comes to life insurance, the healthiest habit you can adopt is quitting smoking. The premiums are usually three to five times higher for smokers as compared to non-smokers. To qualify for a non-smoker rate, you need to have quit smoking as well as using nicotine replacements such as patches for at least 12 months. Obesity follows smoking as a health factor that raises premiums. Losing weight and keeping it within a healthy range can help you get lower rates. If you’ve made positive life changes for one year or more, don’t be afraid to contact your insurance company and seek reconsideration. By getting healthier, you can significantly lower your premiums.

By following the above money-saving tips, you can make life insurance more affordable. As much as cost is important, you should always buy the right amount of coverage you need. The insurance company you pick should also be financially stable and responsive to its customers.