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6 Ways To Buy Life Insurance

Here are just a few ways to save money if you’re in the market to buy life insurance.

Ways To Buy Life InsuranceAlthough most people don’t like to talk about life insurance, the truth is that this type of coverage is an essential part of any good financial plan – and, by following just a few phroogal rules of thumb, you can obtain the coverage that you need at an affordable premium price.

Here are just a few ways to save money if you’re in the market to buy life insurance.

1. Compare premium quotes among several top life insurance companies.

In some ways, shopping for life insurance can be a lot like shopping for almost any other type of product or service. So, when it comes to price, it is important to check with several top insurance companies. Working with an independent insurance agent can oftentimes make this comparison process convenient – as well as unbiased – as these agents don’t represent just one specific insurer and their products.

2. Pay premiums annually versus quarterly or monthly.

When submitting your insurance premium payments, there is often an additional administrative charge tacked on the more often that you pay throughout the year. Therefore, by making annual premium payments, you can actually save a great deal of money – especially over a long period of time.

As an example, if a 20-year term life insurance policy charges a monthly premium of $31.15 or an annual premium of $356.00, over the life of the policy, the insured would have paid a total of $7,476 in monthly payments, but only $7,120 if they had paid annually – a savings of more than $350 over time. This is essentially like getting one free year of coverage.

3.  Buy term rather than permanent coverage.

Today, you’re apt to find life insurance policies with any number of different “bells and whistles” attached. But in reality, life insurance shouldn’t be purchased as an investment. With this in mind, term life insurance is considered to be the most cost-effective form of life insurance available in the marketplace today.

4.  Purchasing coverage at a young age.

When you’re young and healthy, it’s likely that purchasing life insurance is the furthest thing from your mind. However, it’s also the time that you can lock in the very best – and lowest – policy premiums. Therefore, consider purchasing affordable coverage while you still can.

5. Get healthy.

There are a number of health-related factors that can affect the amount a person pays in life insurance premiums. Those who smoke, for example, will typically pay more in premium than those who do not.

Quitting smoking, exercising, and eating a more healthy diet can all factor into making you more healthy overall – and certainly, the healthier you are, the more likely you are to be approved for coverage at affordable rates. In some cases, you may even be considered “preferred,” potentially allowing you an additional premium discount.

6. Be safe.

Believe it or not, the activities that you participate in can also influence the amount of premium that is charged – as well as whether or not coverage will even be approved at all. Hobbies such as skydiving, auto racing, and scuba diving, for instance, can all factor into the life insurance underwriters’ decision. Therefore, practicing safe hobbies can ultimately result in lower life insurance premiums.

In addition to saving money on your life insurance premium, by following most of these tips, you are also likely to get into more healthy everyday habits in general – which in and of itself can help you to live a rich full life.

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