Quotacy wants to help you save money. We pay our agents a salary, not commission, so we will never try and make you spend more than you need to.
Here are 9 ways you can save money on life insurance:
1) Comparison Shop
We cannot stress enough the importance of comparison shopping the different life insurance carriers. Each carrier follows their own guidelines when determining how much coverage and at what cost an applicant should be approved for.
Let’s say you have Type 2 diabetes. One carrier may offer you coverage at $30 a month because they see in your application that your condition is well-managed. Another carrier may offer you $80 a month because they see Type 2 as too big of a risk to ensure at a low rate, even if it is well-managed.
This is where working with a company like Quotacy is beneficial. We work with multiple top life insurance carriers which allows us to shop your case and get you the best rate.
» Compare: Term life insurance quotes
2) Consider Term Insurance
Term life insurance is much cheaper because it is simply level coverage for a certain amount of time, 10 years, 20 years, 30 years, etc. Term is not life-long coverage, unlike permanent insurance.
Permanent life insurance policies have a cash value component that can be quite beneficial for many consumers, but the cash value aspects bring higher premium payments. Premiums for permanent insurance can be 5 to 10 times higher than the same amount of level term life insurance.
3) Buy Life Insurance ASAP
As soon as the need for life insurance exists, buy it right away. Life insurance is generally less expensive when you buy it while you are young and healthy. As you age, you may face health issues which can increase the cost of life insurance.
Bottom line, if need it, buy it. If your near future includes getting married and having children, buy the insurance before you have children. Planning ahead is always good.
As soon as the need for life insurance exists, buy it right away. As you age, life insurance gets more expensive.
4) Improve Your Health
Insurance carriers look at many factors when determining your rates including your health. The healthier you are, the cheaper your life insurance because, to be quite frank, there is less chance of you dying so the insurance company sees there is less chance that they would have to payout a death benefit. Whether you smoke cigarettes or not is a big factor in costs.
» Learn more: Being Healthy Can Save You Money on Life Insurance.
5) Avoid Guaranteed Issue Policies
Speaking of health, if you are healthy don’t buy a guaranteed issue policy. These policies require no medical exam, but have high premiums with a low death benefit payout. Many times people end up paying more in premiums than their beneficiaries actually receive from a death benefit. These policies are typically a last-resort for those who cannot get coverage anywhere else.
6) Choose Safe Hobbies
While sky-diving can be quite exhilarating, it would be best to not make it a hobby, at least if you want to buy life insurance.
Risky extra-curriculars may affect your life insurance rate. Participating in “risky” activities, such as scuba-diving, is okay if it’s once every blue moon, but the insurance company may deem you “high risk” if you make a habit of it.
7) Pay Premiums Annually
As with many other service companies, if you pay the bill as an annual lump sum instead of monthly payments chances are they will give you a discount. This is the same with many life insurance carriers.
For example, a healthy 30-year-old female could get a $500,000, 20-year term life insurance policy for $19/month or $209/year. Going with the annual payments saves a couple dollars each month, and while that doesn’t seem like much in the short-term those dollars do add up. If you pay annually, but die before the end of that year, the carrier will add the amount of unused premium to your beneficiaries’ death benefit payout.
8) Keep Your Driving Record Clean
Just like car insurance, your driving record can affect your life insurance rates. A few parking tickets won’t have as big of an impact on rates, but if you have a record of careless driving, speeding, or drunk driving you can expect to pay more.
» Calculate: Life insurance needs calculator
9) Don’t Buy More than You Need
There are several factors to think about when calculating how much coverage you need.
- Your age – As you age, the higher the premiums.
- The ages of your spouse and children – This is helpful in determining how many years of income replacement your family would need if you were to die.
- Your income – Depending on where you are in your life, you may not need to replace your full income. An example would be if you are retired and have money saved.
- Your mortgage and debts – Make sure you have life insurance to cover outstanding debts.
- College expenses for your children – Do you have children that are planning on going to college? Life insurance can aid in tuition costs.
- End of life expenses (funeral costs) – The average funeral costs $7000. Keep this in mind when planning for your needs.
We have an easy to use needs analysis calculator to help you determine the right amount of coverage for your lifestyle. While you don’t need to buy more than you need, it’s also good to remember that some life insurance is better than none.
Quotacy works with many of the best life insurance carriers to ensure you get the right type and amount of coverage for your individual situation at an affordable rate. Our quoting tool lets you comparison shop in privacy; we do not require any contact information until you are ready to apply.
What are you waiting for? You’re not getting any younger, and the life insurance rates aren’t getting any cheaper! Unless of course you bought life insurance previously and are now healthier than you once were… in that case, run a quote with your new information and see if you can save some money. There’s no time like the present.
About the writer
Marketing Content Manager and Editor
Natasha is the marketing content manager and editor for Quotacy. She has worked in the life insurance industry since 2010, and making life insurance easier to understand with her writing since 2014. When not at work, she's probably studying and working toward her Chartered Life Underwriter (CLU) designation while throwing a tennis ball for her pitbull mix, Emmett, or curled up on her couch watching Netflix. If it’s football season, the Packers game will be on. Connect with her on LinkedIn.