We all know we need life insurance, but it can feel like a bit of a burden when the bill for our premiums arrives in the mail. Luckily there are a few ways you can get a lower rate on the life insurance you need, by following these six tips:
Determine how much coverage you need, and round up. It might seem strange, but a 500,000-dollar life insurance policy might actually cost a little less than a 490,000-dollar policy. First determine how much money your family would need to survive well without you, taking into consideration things like future college expenses or childcare for younger children if your spouse needs to work. Then round up.
Stop smoking and save money on life insurance premiums.
Pay your premiums on a yearly basis instead of monthly. Many companies will give you a discount for paying all at once. Plus, you’re less likely to forget and allow the policy to lapse.
Look for hidden fees. Some of these add-ons, also called riders, are products you really do need. Others may not suit your individual situation. Look for riders like accidental death benefits, accelerated death benefits, waiver of premium, disability income, and term conversion. After researching each of these policy add-ons, you might decide you really want them. But it pays to make an informed decision either way.
Remember term life insurance is cheaper. For many people, whole-life or universal-life insurance policies are the better option. But for those of us who need a policy with the lowest possible premiums, a term life insurance policy is going to match our budgets much better.
Shop around. Just like auto insurance, life insurance policies will vary from one company to the next. Compare rates with several companies before choosing a policy that suits you.