Thinking about your own death is not fun; paying for something that will be useful only when you die can be even less so. But protecting your assets and dependents in case something happens to you is important. Once you calculate how much life insurance you need, you can start to look for the right policy and coverage for you.
If you already have insurance or are worried about those pesky monthly costs, check out these 4 tips for reducing your life insurance premiums.
It's a good idea to get life insurance quotes from different companies. Find a policy that matches your wallet and your circumstances, giving you the right amount of coverage for an amount you can afford. Keep in mind, cheapest is not always best. Also, term life insurance is usually more affordable than whole. It's important to run the numbers for both types to see what makes the most sense for your situation.
Life insurance premiums are based on risk, so the greater the risk you will die before the policy term ends, the more you will have to pay each month. Factors that go into assessing risk include your family's medical history, your weight and lifestyle factors (like whether you smoke). If you undergo a big change like quitting tobacco products or getting a chronic medical condition under control, you may want to get a new quote or negotiate a better price with your current carrier. Basically anything that helps increase your life expectancy will also reduce your life insurance premiums.
The earlier you buy life insurance, the healthier you will likely be and the more likely you are to save on premiums. You can lock in a lower rate by getting in early. You can also plan ahead on a smaller scale by being prepared for your health exams. Your insurance policy may require a medical exam, so it's a good idea to find out which tests you will be taking and prepare. You may want to fast for a few hours, drink more water than usual and avoid fatty foods.
Ask for a better deal
Sometimes you just need to ask in order to find price breaks. Talk to your provider about making annual payments rather than monthly ones, meaning more money upfront but significant savings over time. Don't be shy when it comes to negotiating with insurance providers. It is a competitive market and they know premiums can be the difference between getting your business and losing it.
Purchasing the right life insurance is important, but you don't want the stress of affording your premiums to shorten your life! Having financial protection for your loved ones doesn't have to be a headache. Follow our tips and keep looking for new ways to keep your premiums down without sacrificing the coverage you need.