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How to Save Money on Your Life Insurance

As someone who once spent a few months selling life insurance to the public I know that it is a subject which doesn’t really grab people’s interest. However, if you want to protect your family then it is worth looking into it as soon as you can.

The good news is that you can use the following ways of saving money when you get your cover.

Get It Young

I don’t want to depress anyone, but I guess that it is no great secret that the older you get the higher the chances are of you passing away. This means that with every year that passes the premium you get quoted gets higher. There is nothing we can do to stop the ageing process but what we can do is get covered as soon as possible, to take advantage of the cheaper rates on offer. We also need to bear in mind that if you suffer any sort of serious illness this is going to affect your chances of getting cheap cover in the future. This means that arranging your policy when you are young and healthy is a fantastic idea.

Stop Smoking

Smokers pay more for their life insurance. It is pretty obvious why this is the case, as smoking significantly increases your chances of contracting a few different diseases. If you are a smoker and want to give up then you should check how long you need to have given up before different insurance companies will class you as a non smoker for premium calculation purposes. Maybe this could be the incentive you need to give up a bad habit?

Get the Right Level of Cover

When you are looking at a quote for life insurance it is easy to think that taking out a huge level of cover is a good idea. If you have done what I suggested above and got the quote while you are young and healthy it might be a relatively low cost policy at the start. However, if you are planning on staying protected for the foreseeable future the cost might start to get too much for you at some point, especially if you choose a policy whose premium goes up each year. My boss in the insurance company I worked for was a wise man, and he often said to me that I should never sell a policy the customer might not be able to afford, even if the commission for me looked too good to turn down. In those cases, it was always best to advise the customer to reduce the cover and be sure of being protected at a reasonable cost in the future. Just remember that if you take out a policy which is too expensive and end up cancelling it you won’t have the cover which you were keen to get in the first place.

Shop Around

Finally, we can’t forget that there are an awful lot of companies out there who offer life cover or that they all charge different rates. The more different quotes you get the more likely you are to find something which you are happy with. These days, it is incredibly easy to go online and very quickly get a good number of quotes from different companies. Of course, before you do this you should already have worked out what kind of cover you need and how much of it you want. This will let you compare on a like for like basis and also means that you won’t be swayed by anything which you don’t really want but which the company pushes at you.

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12 Responses to How to Save Money on Your Life Insurance

  1. Having been an insurance agent, one thing I would add to the shopping around is to try to find an agent you can trust. I recommend one of the mutual companies like Northwestern Mutual, Mass Mutual or New York Life. They can sell most companies’ policies and can also help you understand how it all works and to make sure you’re getting the right coverage for you. There are a lot of shady agents out there, so it takes extra time, but if you find a good agent, you’ll be glad for it.
    Ben @ The Wealth Gospel recently posted…Should You Invest in Stocks?My Profile

  2. Mark Ross says:

    I totally agree with you Robert. getting it while you’re young can really save you a lot of money in the end. And yeah, if you want to get a good deal on your life insurance, one should really stop smoking.
    Mark Ross recently posted…Things You Should Avoid If You Want To Be RichMy Profile

  3. Matt Becker says:

    I wouldn’t get more than you need but I also wouldn’t advise reducing coverage just to save some money. The point of life insurance is to make sure that you are fully covered if you need it, and if that costs you a little more than you’ll need to find the room for it. I’ve seen people argue the other way, but I like a flat annual rate for the very reason that it shouldn’t get too expensive in later years.
    Matt Becker recently posted…How to Do an Oil Change for Your Car (Part 2)My Profile

    • Robert says:

      Quite right Matt, it is also best to get covered for the necessary amount. As long as the person can afford it and won’t cancel it due to the cost it will keep them fully covered.

  4. We were smart in that we purchased our life insurance young and got a super good deal. Great tips, Robert, especially the one about shopping around.
    Laurie @thefrugalfarmer recently posted…I Heart Autumn TagMy Profile

  5. I’ve never looked into getting life insurance as I have no spouse or dependents. I am young and very healthy, but I wonder if the lower premium now is worth all the extra years of paying for insurance.
    Stefanie @ The Broke and Beautiful Life recently posted…Money Manners: Property DamageMy Profile

  6. Life insurance for me is very important because I have a 6 year old daughter. Getting a good life insurance is surely you will not regret with the rest of your life.
    Clarrise @ Make Money Your Way recently posted…September blog income and stats recapMy Profile

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