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Life Insurance

How To Save On Life Insurance

By Kate

Let's face it: every type of insurance costs more for people who are statistically more likely to make a claim at some point. The same goes for life insurance. This means that individuals in less-than-perfect health have to fork out more in order to ensure security for loved ones in the event of the unthinkable. Yet smokers, diabetes sufferers, and others do not have to settle for any old premium rate an insurance company offers on a life insurance policy. Much to the contrary, there are numerous easy ways to save on life insurance. Here are the easiest ways for higher risk individuals to save on life insurance premium and get the payments down to a number you can live with.

Make those changes

This might be the least popular way, but it is the most important. Not only will adopting a more healthful lifestyle be an automatic way to save on life insurance premiums, but you will live longer and feel better by doing so. Here are a few of those lifestyle changes:

• Ditch the tobacco. If you have not done this already, the amount of money you save on health and life insurance, and by not buying tobacco, should be enough to be a motivating factor.  Smokers often pay double the premium rate of nonsmokers. And if you claim to be a nonsmoker but die of a condition that resulted from being a smoker, your insurer does not have to pay out your benefits. Quitting can certainly be extremely difficult, but doing so has seemingly endless perks. Think of it as an investment.
• Shape up. The gym is not such a bad place, but if you prefer walks in the park or bike rides, these can also help get you in shape. Tiny things like house cleaning, parking further away, and taking the stairs can even help. It doesn't matter how, but if you are not already, it is time to get moving. You will feel better instantly and see drastic health improvements that will help lower your life insurance premium rates. It's a win-win.
• Examine your diet. Another tough one, but like the two above steps, this ties directly into your health, and thus impacts your premium. Avoiding heavily-processed foods, sweets, and fast food will help you lower your insurance rate as well as your risk for conditions like diabetes and obesity.

Do the math

Not quite as daunting as quitting smoking, but crunching the numbers can be a little time consuming. Instead of setting up a policy with your desired benefit payout and being done with it, taking the time to compare different policies and payment methods can help you save on life insurance.

• Compare rates. If you have a policy in mind you should get quotes from as many insurance carriers as possible to see how they compare. Look not only at the dollar amount, but also the composition of the policy to be sure you will be getting the most from your money on the policy you eventually buy.
• Keep an eye out. There are a few unlikely places for you to save on your life insurance premium, so be sure to look for them. For example, you can save on your policy by bumping out your payout amount to one that is a multiple of $250,000. Check out each insurance company's rate at each payout level, as in some cases you might actually save money by opting for a higher payout.
• Watch for unnecessary price hikes. Paying for your policy month by month may be extremely convenient, but can end up costing you a more in the long run. To see how much extra you would be paying, add up the number of monthly payments and compare the result with the amount it would cost you if you paid in full.
• Escape “high risk.” If you have diabetes, cancer, or another preexisting condition, look for an insurer that writes policies on a case-by-case basis rather than one that will simply put you in a category.
• Avoid extras. Riders like accidental death and premium waiver cost you extra on your policy. If what is written within your policy is sufficient, then there is no reason to pay for additional coverage you do not need.

Saving is easy

Life insurance is vital if you have any loved ones who would not be able to support themselves or cover funeral expenses in the event of your death. But this does not mean that you should have to part with a sizable chunk of your income from now on. You can save on life insurance by spending a little time now on finding the right coverage at the right price and by making a few key lifestyle changes to improve your health.

7/1/2008

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