Let’s face it, life insurance isn’t the most exciting purchase that you will ever make, however, it is a very important one. Buying life insurance is the right thing to do for your loved ones. It offers peace of mind for you knowing that your family will be able to maintain their standard of living if you were no longer able to provide for them.
These days, most people are focused on budgeting and have financial goals in place, so saving money is important whenever possible. The good news: there are ways to save when purchasing your life insurance policy.
- Buy sooner than later. The younger and healthier you are, the better rates you will receive. You aren’t necessarily thinking about life insurance while you are young, but that’s when you can capture savings. By waiting until later in life you are risking not only being older, but also dealing with medical issues which can drive your premiums up and could even deem you uninsurable.
- Pay annually. Some insurers allow you to pay your premiums monthly, quarterly, semi-annually or annually. Annual payments are where you get the most savings.
- Buy only what you need. How much money will it take to maintain your family’s lifestyle without your income? A few things to think about when calculating your needs are: do you have a mortgage, student loans, and/or other debt? Will you need college funding for your children? There are also large costs associated a funeral and burial. As a general rule of thumb, 10 to 20 times your current income is needed to maintain your loved ones’ standard of living. After you have a policy in place it’s a good idea to reevaluate it every few years or anytime you have a major life change. For example, if you welcome a new baby into your family, you need to make sure you have enough coverage for child-care costs and their college education.
- Get healthy. Your health is a factor when determining your rates. If you’re overweight and don’t lead an active, healthy lifestyle you could pay more for life insurance. By exercising, eating right and keeping yourself as healthy as possible you can save money. This doesn’t mean you need to sign up for a marathon or cut carbs out of your diet, but you should be mindful of your health. Living a healthier lifestyle can add years to your life and keep your premiums down.
- Don’t smoke. Smoking and using other tobacco products will increase your rates. Some insurance companies will consider you a “nonsmoker” only if you have never smoked. Other insurance companies will consider you a “nonsmoker” if you have been nicotine-free for a specific period of time. If your goal is to save money, then quitting smoking is smart because you will not only save on life insurance, but you also won’t be paying for the habit.
Buying life insurance is an essential part of life and financial planning, and it can fit into your budget. These tips offer only a handful of ways you can save money on your premiums. Quotacy offers free and instant quotes without giving away personal contact information and will help find you the best rates for you and your lifestyle. Why wait?