If you have a family or other people who depend on you financially, a simple life insurance policy can give you peace of mind and a safety net for the people you leave behind if you die during the policy term.
People often think that life insurance is too expensive to be worth getting. In fact, it's not that hard to find cheap life insurance if you know what kind of coverage you need and how to compare the market.
If you use even a few of the tips below, you could save up to 40% on your insurance premiums.
Think about what you need before going shopping.
To get a good deal, you have to look around, but if you know what you want, it's easier to find. When shopping for life insurance, it's the same. There are so many insurance companies and policy options that the only way to make sense of it all is to do your research or ask an insurance expert for help. No matter which way you go, once you're sure, you can cut out a lot of the market and compare things that are the same to find the best deals.
Think about term insurance.
Because the policy doesn't last as long, Term Life Insurance is much cheaper than other types of coverage like Whole Life Insurance. In some cases, it may be better to save the money and still get term insurance. This is especially true if you just got married or want to have kids. This is often a time when it's hard to afford life insurance, but if you choose a fixed term that matches a period of risk, you can get all the protection of whole life insurance at a much lower rate. For example, you could buy a policy to protect your family that lasts until your children are 18 or 21.
Use an online discount broker.
Using a discount life insurance broker can save you time and money if you know what coverage you need. By giving up some or all of their commissions, discount brokers can compare policies from several well-known insurers and sell policies for less than the standard premium rates. There's no real reason not to use a broker, but you may have to do more research on your own because they usually won't give you any advice.
While you're still young, get it.
When you're young, life insurance costs less because you're less likely to die, so the insurance company has less risk when they cover you. If you buy a policy when you're in your twenties or thirties instead of waiting until you're in your forties or fifties, you'll save some money in the long run.
Keep your health
When you apply for life insurance, you usually have to talk about your health and lifestyle, which could lead to a medical exam. The results of that exam will have a big impact on how much your insurance will cost. Your premiums will go down if you stay fit and healthy and stop smoking. On average, a smoker pays twice as much for life insurance as a non-smoker. This makes a big difference in how much you pay over the life of a policy.
Pay premiums every year
If you pay your life insurance premiums once a year instead of once a month, you can save about 15%.
Don't forget to go over
Don't assume that the life insurance policy you buy when you're in your 20s will still meet your needs when you're in your 40s. When you get married or start a family, pay off your mortgage, or your children become financially independent, and again when you retire, your insurance needs change. About every three years, you should review your policy to make sure it still meets your needs and gives you good value for your money.
