How to save on Life Insurance

There are many creative ways that can help you save money on your life insurance if you are working with the right agent but here are 3 of my top ways to save up to ,500 on your premiums the next time that you are shopping for coverage.

First know what you are covering by finding your number

In this case we will be using the example of a 30 year old male wanting 0,000 of coverage to protect his income and mortgage he just took out for 30 years.

1) Lock in coverage while you are young. Just one year of difference in your age can change what you are paying on your insurance significantly over the length of your policy. If our 30 year old male waited just one year to get coverage his policy might increase by per month. Now while this may not seem like something that is a huge impact take into account that for the same 30 years of coverage he is going to pay ,080 more than he could have. If you are about to have a birthday it may just be time to lock in coverage and save some money. If your birthday was yesterday don’t worry too much. Many insurance companies have the option to “save age” and let you backup and pretend you are younger by stepping back in time to purchase your coverage. Be sure you ask your agent about this if you recently had a birthday

2) Have your plan setup in steps. Again we will use our 30 year old male example. If the main concern is to replace income should he pass before retirement and payoff the mortgage that need will step down each year over time. Now you aren’t likely to find a company that will adjust for those items annually you can easily setup into 3 steps. Have 3 policies in place such as a 0,000 10 year term, 0,000 20 year term, and 0,000 30 year term. These policies will allow for maximum coverage with adjustment for total need over time. If our 30 year old male were to pass at 31 I think it would be safe to assume there would be much greater financial impact than if he were to live to 60 and have a full retirement account with no debt. By setting up this method although you may pay more initially if you look at the full length of coverage it can work up to a savings of over ,500!

3) Update your coverage if your health improves. Now for most of us our health isn’t going to improve with age. The milkshakes, cheeseburgers and pizza are going to catch up with us fast while sitting behind a desk all day. If however you initially took out coverage because of a medical event that finally got you motivated you may have been “table rated.” This simply means you are a higher risk to the insurance company so they are charging you more money than a standard candidate. Things that often cause this are if you had a medical event such as cancer, blood pressure issues, or heart conditions. Some policies would rate for this as far back as having something like this occur within 10 years. I have seen people save hundreds of dollars each year because of this update.

The main thing to keep in mind is your insurance agent should be on your side. This means that they are looking for creative solutions to take care of you and your family. Most will accomplish this through annual reviews to make sure the policies are keeping up with your needs as life changes if you haven’t reached out to them. If you haven’t heard from your agent in over a year it might just be time to call on a new trusted adviser.

I hope this helps shed some light on ways that you might be able to save money on your life insurance without sacrificing protection for your family.

This entry was posted in Insurance Videos. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.