The minute you start shopping for life insurance, you start realizing just how much it can vary from provider to provider. Each policy is different and the rates can fluctuate quite a bit. However, there are some common factors that lower the premiums on your life insurance from most companies. Here are some things that you can do to help ensure you get the best possible rate for your life insurance!
Getting life insurance as early as you can will pay off when it comes to your rates. Health is a major factor in how insurance companies assess you for life insurance, and the younger and healthier you are, the more likely you are to get approved for a better rate. You might think that you’re too young to need life insurance, or because you don’t currently have anyone who depends on your income that you don’t actually need it, but that isn’t true! The younger you buy life insurance, the better, and there are plenty of benefits to having a policy outside of just supporting your family in the case of a tragedy.
Live a Healthy Lifestyle
There are a lot of bad habits that you might be engaging in that can not only pose a risk to your physical health, but can make it harder for you to get a good rate on your life insurance. Things like smoking, excessive drinking, recreational drugs, or a poor diet and exercise routine are all red flags that insurance companies look out for. You can give yourself a better chance by quitting smoking and drug use, significantly cutting back on heavy drinking, and attempting to get into a better place with your diet and exercise; weight loss can be a good sign as well and will improve things like your blood pressure and cholesterol levels.
Consider Not Taking Additional Benefits
When you’re looking for a life insurance policy, you’ll start hearing about things called “riders.” Riders are optional add-ons to your policy that allow you to do things like withdraw a portion of your payout early if you are diagnosed with a terminal illness, or pay a lump sum to your family if you die in an accident. These can be useful additions, but they bring your cost up, and if your priority is cost-effectiveness, you’ll have to consider each rider carefully to make sure it’s worth it in your specific situation.
Buy Term Life Insurance
Term life insurance that covers you for a preset period of time, say 10 to 30 years, is often more affordable than permanent life insurance, which lasts your entire life. If you aren’t in a position to need lifelong insurance commitment, this can be a great way to customize your life insurance so that you get the coverage you need at a price you can afford.
Consider Your Payment Schedule
The most common payment schedule for insurance is monthly, wherein you make a small payment every month. In many cases, however, there are other options for the timing of your payments. Some companies offer quarterly payments, but this isn’t ideal for most people because it doesn’t always carry any included discounts and results in you having to make a bigger payment. If you choose to pay annually, however, even though you’ll be making a large payment, some companies will offer you a small discount! This can be a good way to help make your life insurance more affordable overall.
There’s a good chance that these items can help you to get a better price on your life insurance! At YMI, we know that navigating through many different insurance companies and policies is confusing and time-consuming, so we’re here to do that difficult task for you. We are an independent insurance agency that offers our extensive industry knowledge and personalized solutions to help you get the best possible life insurance you can. Contact us today to learn more!