6 Easy Ways to Save on Life Insurance

For many of us, life insurance never crosses our mind until we go through some kind of life-changing event, such as getting married, buying a house, or having kids. 

It’s then that we start thinking more about our obligations, responsibilities, and priorities.

Even when life insurance is a priority, the ability to manage all of your financial obligations can seem daunting at times, and one of the reasons that many individuals state for not purchasing life insurance is that it’s too expensive.

However, whether it’s grocery shopping, car shopping, or shoe shopping, there are always ways to save money. It’s no different when it comes to purchasing life insurance.

Here are six tips to save on life insurance:

1. Apply early

Age is one of the largest determining factors for life insurance payments. In most cases, the younger you are when you apply for life insurance, the less you’ll pay. So if you’re on the fence about applying now or later, consider applying now, even if you’re not sure how much life insurance you need. You can always add a second policy later or increase your coverage if you need more protection as you age.

2. Opting for term insurance

Term insurance provides a set amount of life insurance at a fixed rate for a specific period of time, from one year to twenty years or more. The longer the term you purchase, the less the initial cost will be per year.

3. Get less insurance

Depending on your situation, you may not need to replace all your income. Figure out what your death would mean financially to your family and determine their needs — both short term (paying for your funeral) and long term (paying off the mortgage, education costs, etc.). Determine if you could provide for most of your family’s needs with less life insurance. If so, your family would still have some protection, but you won’t have to pay as much each month or year.

4. Improve your health rating

Health issues will make your insurance more expensive. Getting healthier can mean savings. Quit smoking, eat healthier, and exercise regularly. Lowering your cholesterol and blood pressure, and losing weight can help reduce your premiums by quite a bit.

5. Pay annually rather than monthly

Depending on the life insurance product purchased, there are often slightly higher payments if you have decided to pay monthly rather than annually.

6. Seek the help of a financial advisor

As with any consumer product, there are many pricing options based on the manufacturer, for example, “no-name” versus brand name products. Similarly, life insurance payments can vary dramatically from one insurance provider to the next. Speak to a financial advisor who is familiar with life insurance savings and can find the best policy and price for you. A financial advisor can help ensure you are purchasing an insurance policy that you can afford and allows you to be prepared for the unexpected.

Remember, life insurance is one of those things — you don’t want to learn how important it is once it’s too late. Take the initiative now, research your options, and help protect your family!