Life insurance coverage can add up. While the output is completely worth it, the small deductions from your monthly paycheck can add up, especially if money is tight.
When you’re pinching pennies and need some relief on your life insurance premiums, there are still some options out there for you to help lower the costs, without lowering your benefits.
Here are 3 simple ways you can save money by lowering your life insurance premiums:
Know What You Need
When purchasing life insurance, you should have a good idea of how much coverage you will need. While many underestimate the amount of coverage they need, some also overestimate, and therefore overpay on their premiums to support this unnecessary overload of insurance. Make sure that you’ve picked the right policy for your needs, and talk to your agent or carrier to fix that if you feel that you’ve gone overboard with your life insurance coverage.
Know What Your Are Paying For
Too often, people don’t read the entire terms of their policies and get tricked by the larger insurance carriers into paying hidden costs for insurance they didn’t ask for, or even need. Sometimes these life insurance policies will include hidden riders, or conditions, like extra death benefits or critical care benefits that may not be necessary. So make sure to check to get the coverage you need, and nothing you don’t, in order to keep costs low and efficient.
On the other hand, these rider policies can be a great way to get supplemental coverage that you want, without having to purchase an additional policy and pay more money. If you need a little extra coverage for certain exclusions like accidental death coverage, you can add that to your policy for a little bit extra a month, without having to purchase an entirely new policy and pay two separate premiums each month. This will save you quite a bit by working it out this way.
Cut Out Your Bad Habits
Surely, this isn’t the first time you’ve heard that your poor habit of using tobacco is hurting your bank account, and it won’t be the last. Smoking, or even just chewing tobacco, will significantly increase your premiums, without increasing your coverage. By smoking you are claimed as a higher risk to insure by insurance companies, so you will get higher premiums as a result to pay for your added risk. And don’t even try to lie and say that you don’t smoke in a medical exam. They will find out, and they will penalize you for it. So to lower your costs, stop smoking and stay smoke free for 2-5 years and see your premiums continue to lower. Don’t believe me? Check out ‘Why Your Life Insurance Rates Are So High And What You Can Do About It.’
Now, smoking isn’t the only bad habit that can raise your life insurance premiums. If you have a horrid diet, and lazy fitness to match it, leaving you with poor health, and a not-so-fit physique, you’ve probably been cursed with high premiums as well. If you are unhealthy, you are also a major risk to the life insurance companies, as you are subject to more illnesses and diseases as a result. But if you clean up your act, and work to be healthier, you can drop some weight, as well as your premiums.
Life insurance doesn’t have to be expensive. With these tips you can save money, and ensure that you get the life insurance coverage you need. By finding the right coverage, cutting out the excessive coverage, and working to improve your lifestyle, you can find yourself happy, healthy, and with a full wallet.