How To Save Money When Buying A Life Insurance Policy

Without a doubt, buying life insurance is important but, the truth be told, it often leaves a strain on your wallet. There are ways to save lots of money when buying a life insurance policy, but they don’t always lead to paying a lower premium instantly.

Paying a huge amount of money for an unrewarding service or a service that doesn’t offer as much as it’s expected is a waste of money. But It is possible to maximize every dollar spent on life insurance. However, you need to be aware of this reality. The reality is, it is not hard to find an honest, yet best whole life insurance, as long as you know the things that you need. Below are some smart ways to save some money when buying a life insurance policy.


Focus Only On Trustworthy Companies

Many organizations sell disaster protection. It is best to work with organizations with high appraisals from, at least, two autonomous rating offices. A low premium from a flimsy organization is certifiably not a decent purchase.

Choose An Agent Who Can Source Quotes From Multiple Insurers

This saves you a lot of time — because you won’t need to request quote after quote from individual insurance companies. As seen on, you can compare life insurance quotes to find out which insurer is the best fit for you. Additionally, a knowledgeable agent or broker can recognize which insurers are more profitable.


Buying A Life Insurance Policy


Don’t Waste Time Shopping Across Brokers

Simply put, agents and brokers can’t discount rates, whether you’re with your agent face-to-face or in an online conversation. Life insurance prices are regulated, so the rate an independent broker shows you is the same rate you’ll be shown anywhere. When you discover a reliable broker you like, just stay put with him or her. This will save you both the energy and time spent shopping across brokers.

Disclose All Health Challenges Upfront

The insurance provider has a special preference for potential customers that tell the truth about the state of their health, being transparent about your health history gets you the most accurate quotes and with that, you save yourself a surprise down the road. Do not trivialize any health issue, no matter how mild or unimportant you may think it is.  If you do not disclose your health condition, it can be discovered in the underwriting procedure and may affect your premium.

Another good reason to disclose everything upfront is, by doing this, your agent can match you with the most competitive insurer. Some insurers, for instance, are more accommodating than other insurers for people with diabetes, or who have a family history of cancer.

Stop Smoking

One of the biggest money-saving plans for anyone going for health insurance is to quit smoking. This is very serious because the impact of smoking on life insurance premiums is drastically increasing. If while you were a smoker, you get life insurance, and at some point, you quit smoking, you can make a request for requalification for nonsmoker rates after you’ve been tobacco-free for at least 12 months.

A medical examination is required for this to show you’re tobacco-free; however, doing this will probably save you a lot of money. This lead to the next vital thing

Take A Medical Exam

Most people consider medical exams a hassle, but they aren’t as bad as we think. Opting for a non-medical exam is way more expensive and would cost you more. Insurers have to explain the added risk of not having an exhaustive picture of your health.

In general, premiums for these policies are mostly higher right out of the gate — even if you’re not in a perfect state of health.

Opt-In For Annual Payment

We know, this may seem hard to come by but it is not impossible. If you can swing a year’s worth of payments, you will save a great deal of money. This is because when the premium is paid month-to-month, insurers add extra fees. Some company’s discounts for annual payments are as high as 8%, which can add up. So, it is always in your best interest to choose an annual payment model.

It Is Better To Buy Early

Age has an effect on the amount insurance companies charge for life insurance. As age increases, the cost of life insurance also increases. Similarly, the number of insurers willing to work with significantly reduces depending on your health history. So, if life insurance is a need, the best time to buy it is now.

Go For A Guaranteed Level Term Premium

It is common to hear people say the premiums paid for the policy won’t increase during the term. However, it is more expensive to buy life insurance at an old age, so by buying when you are young and getting a guaranteed level of term life insurance, you’ll be able to average the cost of those later years instantly. This will guide against having to deal with higher premiums later in the future.

If you do not have clarity about how much coverage to buy, the easiest way to learn is to use the available insurance checkup tool to know term life insurance rates. The procedure is, looking at your current financial and family state of affairs and your plans down the road and figure out the most favorable amount of insurance to buy.

Life insurance is important because it protects your family and allows you to leave them a non-taxable amount at the time of death. It is also used to cover your mortgage and your loans, for instance, your car loan. Your life insurance follows you when you retire and you are no longer insured by your employer. Moreover, life insurance would replace your family income when you have little to earn and resources are less so they can maintain their quality of life.

If life is worth it, then it is worth insuring. But, life insurance is not supposed to cost you a fortune. With the points carefully highlighted in this post, you should be able to get a good life insurance policy and save money while buying one.


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