Tips For Saving Money on Term Life Insurance

While life insurance is something no one wants to think about, it is a product/service everyone needs to protect the financial future of their families, spouses, and children. There are ways to save money on permanent and term life insurance and still get great value by buying the best policy available. These tips will help consumers find affordable quotes for term, whole, universal, and variable policies from the best companies.

Check Insurance Company Ratings

Life insurance contracts can be a long term commitment, so it is important to make sure that a life insurance company will still be around in 30 years. To find out if a company is financially strong, consumers can check with two or more rating agencies. The rating agencies include A.M. Best, Weiss, Moody’s and Fitch Ratings, which will provide consumers with information about the best companies in terms of policy offerings, customer service, pricing and premiums, billing and payment options, claims service, and financial stability. Buying life insurance from an unstable company means consumers could lose their money and coverage when they need it most. Finding a list of the highest-rated companies will help you know which carriers to contact.

Compare Net Costs

Life insurance may be sold in increments of $50,000 or $100,000. As the amount of coverage on the policy rises, the cost per increment may drop. By using a net cost index provided by the carrier, consumers can check their rates for the net cost of different amounts of whole or term coverage. The difference in term life insurance prices between a $250,000 death benefit and a $500,000 death benefit may be relatively small and affordable. Checking the net cost index can help consumers get the best value for their money.

Look For Discounts

In some instances, the price of a lower death benefit may actually be more than the cost for higher coverage because the insurance company offers a discount for policies with the higher limit. Consumers may also be eligible for other types of discounts like customer loyalty discounts for buying multiple policies, like car, life, and home, with the same company. Ask insurers if they offer discounts on their term life insurance to take advantage of the extra savings. Many quote comparison sites will also immediately search for discounts online that you may qualify for.

A Healthy Lifestyle Can Save Money

Non-smokers who exercise regularly, maintain a healthy weight, and do not drink heavily enjoy the cheapest term life insurance rates. Individuals who already have coverage may be able to lower their current premiums  if they quit smoking or drinking alcohol, lose excess weight, and stop engaging in a dangerous hobby.

Applications for life insurance may ask about exercise habits and medical history, and attending an exercise program at least three days a week may also lower costs. Healthy habits are proven to increase your life span and lower the risk of applicants for company’s.

These tips can lower the cost of anyone’s term life insurance. Consumers looking for affordable premiums need to review different types of policies and coverage offered to see which will meet their financial goals and budget requirements. Remember, term coverage is the cheapest and most popular kind of protection available, but it may not be the best one to address your needs. Consider researching whole and universal life insurance if you need to.

Written by Christina, a freelancer from Christina is a retired life insurance agent and broker who educates consumers about life policies, needs, and how to find the best coverage.