How To Lower Your Life Insurance Premiums

Life insurance is a valuable tool that can provide financial protection for your loved ones if you die. Getting life insurance if you’re over 50, though, can be a costly proposition. Because life insurance companies use age when determining coverage rates, you will likely pay more than a 20 year old would pay for the same amount of coverage. Fortunately, there are simple ways you can help keep your life insurance costs under control. 

Opt for Term Life Insurance 

Your agent may suggest that you purchase whole life insurance, which covers you for the rest of your life or until you reach the age of 100. Although whole life insurance might make sense if you are looking for a way to provide your children or spouse with an inheritance, it is typically quite expensive if you are over the age of 50. 

You can opt instead for term life insurance, which covers you for a specified number of years. If you outlive the policy, it will not pay out. Because insurance companies have a lower risk of a claim payout with term life than on a whole life policy, the rates for term life are significantly lower. You can purchase the same amount of coverage for a fraction of the cost. 

Typically, the shorter the term, the less you will pay for coverage. A 10-year term policy will cost less than a 30-year term policy. 

Shop Around Before Buying a Policy 

Not all insurance companies charge the same rates for life insurance coverage. The cost per thousand dollars of coverage can vary substantially among life insurance companies. By obtaining several quotes before choosing a life insurance policy, you can ensure that you are getting the coverage you need at the best price. 

Internet-based quoting sites make shopping for life insurance rates a simple process. You can enter your personal and health information and obtain a quote within just a few minutes. Some quoting sites will provide you with rates from several insurance companies at once, making the process even faster and easier. 

In some cases, you can even buy a life insurance policy online after you have found a policy that fits your coverage needs and budget. Some life insurance companies offer special rates for online buyers, which can help you save even more money. 

Quit Smoking 

Finding cheap life insurance if you’re over 50 can be challenging enough, but if you smoke, it can be even more difficult. Life insurance companies typically have separate rating tables for smokers and non-smokers. Smokers pay substantially more for the same coverage than non-smokers. You may have to remain smoke-free for a certain amount of time, usually one year, before you can qualify for non-smoker life insurance rates. 

Pay Your Premiums Yearly 

Coming up with a year’s worth of life insurance premiums can be challenging for some people, but if you can do it, you will likely reduce your life insurance costs. Although monthly installments are more convenient, most life insurance companies tack an installment fee onto each monthly payment. These fees can cost you a substantial amount of money over the life of the policy. 

Although you might want to spend as little time as possible thinking about life insurance, the time and effort you put into these strategies can pay off in the form of more budget-friendly premiums.

 

Sorry, Comments are Closed.

You'll have to take it up with the author...