You want life insurance. But you also want you to have enough money for an outing to the restaurant. Understandable! Here are six tips to reduce the price of life insurance.
Remember that the cost of life insurance is decided when the contract is accepted. It’s like a phone contract: once you’ve signed the contract, the price stays the same for the entire term.
Table of Contents
Tip 1 – Do not smoke or quit
This is the thing that will save you the most. The cost of insurance for a smoker can be double the cost for a non-smoker or ex-smoker.
Are you a smoker? There are also savings for you! Some companies agree to reduce a smoker’s insurance premium if they have stopped smoking for 12 months or more.
Tip 2 – Shop
It is essential to shop for the insurance that has the best value for money, and that fits your needs.
For example, if we compare two insurances:
At the end of the coverage, insurance one will have cost $ 950 less than insurance 2. Imagine what you could do with these great savings!
When shopping for your insurance, it is irrelevant to shop with several insurance brokers because the price for the same insurance product is the same for all brokers. However, make sure to do business with an independent broker (like us!) And not with an affiliate broker to an insurer.
Tip 3 – Buy your insurance at a young age
Statistics display that the younger a person is, the less chance they have to die. That’s why insurance costs less for a 20-year-old than for a 40-year-old. Take advantage of statistics to save on your insurance!
For example, $ 300,000 for 20 years will cost you a little over $ 20 a month if you buy it at age 20. This same insurance will cost more than $ 30 if you buy it at age 35 and over $ 60 / month at age 45.
Tip 4 – Have a healthy lifestyle
The healthier you are, the less luxurious your insurance will be! Again, it’s all about data: Healthy persons have a greater life expectancy. That’s why your health and family history affect the price of insurance.
Your lifestyle also changes the premium of your insurance. For example, if your favorite sport is skydiving, your insurance may be more expensive than someone walking.
Tip 5 – Buy Term instead of Permanent Life Insurance
If you are looking to save money economically, consider term insurance in your options. It is much cheaper than permanent insurance: for example, permanent insurance of $ 75,000 will cost the same price per month as temporary insurance of $ 500,000
Term life insurance is, therefore, a wise choice to financially protect your family since it allows you to offer more coverage.
Tip 6- Buy just the amount of insurance you need
You could save money by determining the coverage that’s right for you. The difference between $ 200,000 and $ 300,000 for the same term is only a few dollars a month, but after 20 years of monthly payments, there is a difference.
Do not know how much insurance you need? The amount of life insurance your brother-in-law may have chosen may not be the one your family needs
Tip 7- buy the amount of insurance you need
This can be the last object on the list, but it’s certainly the first thing you want to apply! Two excellent reasons:
- You can save up to 8% on the price of your insurance by paying it annually
- If you set aside one-twelfth of the cost of your insurance each month, at the end of the year, you will be able to collect the interest on the amount. In addition to saving, you get rich!