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How to Save Money on Life Insurance

Tuesday, 05 Oct 2010 11:54 AM

People generally invest their hard-earned money in life insurance as a cover for emergencies and to help their family in the event of their death. However, this does not mean that you should put more money than required into life insurance. It is advisable to invest only as much as necessary and not to get lured in by the claims made by insurance agents regarding attractive returns. Life insurance is solely a cover against emergencies and should not be made for investment returns. 
Here are some tips for buying life insurance:
  • If you want to save money on life insurance, first calculate how much you really need as life coverage. The higher coverage you ask for, the more you will have to pay as a premium. You should also calculate how high of a life insurance premium you can afford, be it monthly, quarterly, or yearly. In general, annually paid life insurance premiums offer a better value compared to monthly paid premiums.
  • You should get the maximum possible number of quotes from insurers and then shop around for the lowest rate before deciding on a life insurance policy. Shopping online could be a good option, as you will get all the quotes in one place. There are various websites that you can consult for life insurance quotes.
  • It is advisable to purchase life insurance by yourself from the insurer and not through agents. However, if you are not sure about what policy to buy, then you should definitely consult a financial planner or an insurance agent. It is better to pay a fee or commission rather than buying a policy that is not suitable for you. But remember that agents generally get paid based on the premium amount and the policy sold.
  • You should consider life insurance policies without any exit or entry load, or at least those with a low load. Most of the time, these loads or charges go into the commission and fees for the agents.
  • The last, but maybe the best, way to save money on life insurance is to stay healthy. Life insurance for healthy people costs less. The cost rises for those who smoke, suffer from obesity, and have diseases like high blood pressure, diabetes, and heart problems. You will be considered a nonsmoker for life insurance purposes only if you have never smoked. Therefore, there is no better way to save money on life insurance than living a healthy life and being disease-free.

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