subject: Term Insurance - 10 Life Insurance Saving Tips [print this page] You can save on life insurance even in a depressed economy. Here are 10 ways to help you get the life insurance you need at a lower cost.
1) Buy term life insurance Term life is typically much less expensive than whole life or permanent life, which charge higher premiums for lifelong benefits and cash accrual.
2) Comparison shop The life insurance industry is very competitive and that's good news for consumers. Rates can vary from one company to the next, so you should get several quotes to find the lowest rates.
3) Get healthier Life insurance rates are based on several factors including age, gender and health. If you stop smoking or lose weight you can save significantly on your premium.
4) Select your coverage carefully You may calculate that you only need $460,000 of coverage, but it actually may be cheaper to take out $500,000. This is because life insurance companies often discount for the higher coverage amount.
5) Look for a specialist if you have health issues Some companies specialize in providing coverage for individuals with certain health problems such as diabetes, or with certain lifestyles. Ask an agent or broker for advice if you think you're getting too high of quotes.
6) Pay your premium annually Many insurers charge extra fees if you pay in monthly or quarterly payments.
7) Ask questions If you feel like you've been rated unfairly, ask questions and try to negotiate with the company for a lower rate.
Don't be talked into buying more than you need Some agents and brokers may try to up sell you into a whole life policy or add other riders that you may not necessarily need.
9) Check out group insurance Your employer or an association may offer a group rate for life insurance. Compare this with at least three other quotes. It may be the lowest one.
10) Choose financially stable companies You want to make sure the company will be around. After you get some quotes, you can check the insurer's financial ratings through Weiss, Standard & Poor's or A.M. Best.
