How to Lower Your Life Insurance Rates
Universal Life Insurance Company (Photo credit: Thomas Hawk)
Life insurance can be an important purchase for individuals and families alike, albeit an expensive one. Many people, right now, are overpaying for their life insurance simply because they do not take the time to look at all of the other options that they may have available to them. There are a few steps that you can take that can help you to lower your life insurance rates just by making a few small changes to your daily life that could improve your overall health, reduce the risk of you unexpectedly passing away, and lower the risk associated with you to insurance companies. A few simple steps can help you to secure a much lower overall rate.
Lose Weight
One of the biggest things that is taken into consideration when you sign up for a life insurance policy is going to be your overall health. Nothing has a bigger effect on an individual’s overall health than their weight. By losing weight, you are greatly reducing the potential harm that could be done to your body in many different forms. Losing weight is not only one of the most beneficial things that you can do for yourself in day to day life, but it will also greatly reduce your life insurance costs as well.
Pay Annually
As with most large purchases the company usually will give you an option to pay off your full year of life insurance in one bulk some. While you might have to plan far in advance to make this option viable for you, it can greatly reduce the amount that you expect to pay on your life insurance overall. Some companies offer as much as a 30% discount on their normal rates when you are willing to pay annually instead of monthly. This is an option that many people choose because it provides the simplest way to reduce your overall insurance costs.
Look at Term Life
Instead of looking at full coverage, you can save a great deal of money by being willing to look at lesser options. With life insurance, making the jump down to term life insurance can save you hundreds of dollars over time. Term life insurance only covers you for a specified amount of time, but is going to cost substantially less, and gives you a time in which you need to ensure that you have your finances prepared for your family, as your term will come to an end.
Quit Smoking
Did you know that being a smoker directly affects the rates that you are given for life insurance? This is because smoking directly affects the probability that you may unexpectedly pass away. When you fill out your life insurance form, most of the time they are going to ask you if you are a smoker. If you answer yes, or have smoking on your medical history, they are going to charge you much more for your plan. Quitting smoking is not only a good idea personally, but for life insurance rate reduction as well.
Category: Life Insurance
