As a sensible man once said, price is what you pay, value is exactly what you get. That wise man? Warren Buffett, you never know a few things about investing well. This could easily be applied when looking for life insurance or updating the relation to their policy. Obviously, you want to get good value – insurance coverage is designed to give a level of financial security for those you love most. However, you should also get that value at the best price possible, since it is always better to keep money in your wallet rather than place in someone else's.
So how can you start saving money on life insurance coverage? We're glad you asked. We have a few friendly bits of advice below.
If you do not have it, you will want it now.
Youth and health are relative things, but it's often necessity that you'll not be younger than you're right now. (And while you without doubt have plans-or hopes-to improve your health in the future, the truth is that, as you age, your wellbeing will probably decline, too.)
The upshot? Life insurance coverage is almost certainly less expensive right now than it is ever going to be. The reason: Insurers are making an actuarial bet in your longevity, and essentially can provide a lower premium for the similar policy, based on the number of years you will be paying in it. Also, in case your health history changes in the near future, it could improve your premium (or perhaps limit your options). Getting covered ASAP is nearly always a good idea-you never know when an emergency might strike. It turns out, it'll save you some money, too.
If you're a smoker, quit
This is another one that doubles as both good life advice and a potential money-saver. Simply put (and as the surgeon general continues to be warning for decades), smoking is hazardous to your health. This will make you a riskier bet for insurers, so they charges you you more for coverage. Actually, some studies have shown that this may be the No. 1 factor in raising your premium. We understand that it's difficult to break this specific habit, but think about the potential financial savings an additional motivator.
And note: If you're already insured and you stop smoking, make sure to let your insurer know. You won't qualify for a lesser rate right away, but generally, if you're able to show you've gone a couple of years living smoke-free (give or take, based upon the insurance policy provisions), you will probably save a bit of cash.
Disclose any health problems up front
Basically, any issues will probably be discovered on your exam, so the rate you shopped for may not be the speed you at long last get. Quite simply, disclosing your wellbeing history is important for you to find out the actual rate, which is essential for price comparisons. (For instance, some insurers charge more than others to insure individuals with diabetes. Disclosing this condition in advance makes it much simpler to find out which insurer will offer you the best rate.)
Buy what you need
Term life insurance covers you for any specific period of time, for instance, 10, 20 or 30 years. Your hope is that you never need your term life policy to spend (because, you realize, that means you outlived it). For that reason, you need to pay no more than is absolutely necessary. Fortunately, it's never been so easy to determine just how much term life insurance you need. And again, obviously, but underinsuring can be expensive inside a different way-not for you, as well as the loved ones who needed more coverage. You will also need to make sure your policy covers a sufficient number of years. Again, forget about with no less.
Decide what kind of policy to buy based on your needs
When looking for life insurance, you will find both term and permanent life insurance coverage (whole life is an illustration of one sort of permanent insurance). We've already talked about term life and its features. Permanent life insurance offers lifetime coverage, and features a cash accumulation feature that builds value during the period of the policy. That also implies that premiums for permanent life insurance coverage are significantly more expensive than term insurance. It is also more complicated, and might require the assistance of an economic professional. Need to know more? Learn more about what type of life insurance coverage can be a good fit for you personally here.
If you're healthy, think about a medically underwritten policy
We have it: Taking a health check can feel as an inconvenience. But consider, for a moment, your insurer's perspective: Insuring someone with out all their medical details are a risk, and your whole clients are assessing (and charging for) risk. Quite simply, if your policy isn't medically underwritten, it'll almost certainly set you back more since your insurer charges you you for this unknown risk.
As we said above, to get the most accurate rate on your policy, be completely transparent about your health background and overall degree of health. A medically underwritten policy provides the insurer the most information to work with. Here's the best way to prepare for your lifetime insurance health check.
Watch for level premiums
This is yet another method of saying that that which you pay at the beginning of your coverage is what you’ll pay each month throughout your policy. If you don't have this option, you will pay a greater premium as you age, which obviously will definitely cost more money.
Another thing to look into: Whether your insurer provides a discount to make annual, rather than monthly, payments. (This might also reduce fees.) Obviously, this means paying a larger lump sum, and not everyone is able to afford to do this. But when you can, it's worth considering.
Comparison shop
Behold, the glory of capitalism! You, the customer, can decide on an array of suitors after you have narrowed down their email list to insurers who meet your requirements. One method to do that would be to employ a broker to buy you, which can spare you the need for requesting quotes from a range of insurers. (Just realize that, legally, these brokers cannot negotiate better rates for you-insurers must offer you exactly the same rate they provide the broker.) If you have chose to get term life insurance, good news – in the 21st century, you may also easily and quickly get a quote online.
Keep in mind that you can't necessarily place a price on some things-for example, the benefit of applying for insurance online. It's also wise to check the ratings of insurance providers to make sure the company that issues your policy is in good standing.
When it's all said and done, life insurance is like anything else: You would like the best you really can afford. Fortunately, it is possible to increase the value you get while decreasing the price. (Great tip, Warren.) Ready to begin? Get an estimate for coverage now.
