To ensure your family or dependents’ good lifestyle even after you are long gone, every individual should consider upon taking life insurance. But the costs of such a policy might be high depending on the coverage. In recent economic conditions, when it’s difficult to make ends meet; life insurance premiums may seem to be quite a burden.
So, should you think of dropping the idea of having a life insurance policy that would get you peace of mind? Should you leave your family to be left out in the cold, if anything ever happens to you?
Never, just hold your breath and go for a life insurance. The cost of a life insurance policy can be kept considerably low, so that you can save on your premiums and yet enjoy the benefits you need. You just need to know how and implement those techniques.
Here are a few ways to cut down your life insurance premium cost:
1. Get it while you are young
Life insurance policies are usually much cheaper when you are young and at the prime of your health. So, go for it when you are considerably young to enjoy greater benefits with lesser premium costs.
2. Quit smoking and live healthy
Most of us know that premium rates are higher for smokers. It’s good to keep in mind that some insurers almost double the rate for smokers than the non-smoker rate. So, it is best if you are a non-smoker, if not then quit smoking. Discounts can also be availed if you lose weight and regularly exercise to stay fit and healthy.
3. Know your coverage needs
Determine how much coverage you need depending on your financial condition and lifestyle. Calculate how much your spouse, children or other dependents may need, should you pass away unexpectedly, and buy that much of coverage. You may apply the same theory for the term of the policy, if you don’t need a permanent one. For example, you might need a policy just to cover the expenses for your children, till they turn 18. In this case, you don’t need to get a 30 year term.
4. Consider rounding it up
Once you know your coverage needs, you’ll find that you may save by actually paying less for more coverage. Policy rates usually drops, once you cross a certain threshold amount. For example, premium rates may be higher for $245,000 as compared to $250,000. So, compare to find out how much more you can get for how less.
5. Drop the unnecessary riders
Riders may be pretty valuable in some particular situations but don’t get lured into buying those unnecessary riders, just because your agent says they are helpful. If you’re your objective is to cut down costs, then consider carefully whether you really need a rider or not. Some riders may just provide false sense of security, while chances of getting benefits from it are remote.
6. Pay your premiums yearly
Insurance companies usually charge less if you opt to pay your premiums annually. Paying every month in small amounts might seem easy but they usually add up to greater amount compared to the one lump sum amount paid yearly.
You may even consider saving those monthly premiums in a savings plan and earn an interest apart from paying the yearly premium from it.
7. Bond with a friendly insurer
There are some insurance companies which offer comparatively cheaper rates to people with health conditions like, heart disease, diabetes, cancer etc. This is because they write out policies on case by case basis rather than classified groups.
8. Look out for hidden costs
Don’t fall for anything that may seem too good to be true. Have a full understanding of what you get for how much. Look out for extra charges that the insurer might be charging for any service. Always read the policy carefully and know about all terms and costs before buying it.
9. Change your risky occupation
Policy rates are usually high for people having high risk occupation or hobbies. Needless to say that extreme sports and hobbies like skydiving, bike racing or mountain climbing can cause accidents making one more susceptible to injury or death. So, if possible change your occupation or hobby to save money on your premiums.
10. Compare and get the best bargain online
Like any other product you would like to shop around before zeroing down to one policy. The internet is the best place to do so. Just browse through the websites and compare policy price quotes from multiple carriers. Just keep in mind to compare the prices of policies that offer same sort of benefits on similar terms.
Following these ways can be beneficial to you before you buy a life insurance policy. Thus, just keep the afore mentioned points in mind while shopping, and pick up the right policy for yourself that not only gives you the benefits you need but are also easy on your pocket.Blog Category