How to Get Lower Life Insurance Premiums

Life insurance gives you peace of mind in knowing that your loved ones will be taken care of once you are gone. Many people are afraid of getting life insurance because they think it is too expensive. However, the amount you pay will depend on the results of the assessment the insurance company carries out when applying. That said, there are several things you can do to lower the premiums you pay on your life insurance policy.

Buy as Soon as You Can

When you are young, you are likely healthy. Because of this, life insurance premiums are often lower for young applicants. Therefore, if you want to avoid a higher premium, start investing in life insurance as soon as you start earning. However, it is never too late to get life insurance, so if you do not already have it, start shopping for a plan right now.

Choose the Correct Term Length

The policy’s term is a huge determinant in the amount of premium you pay. The longer the policy term, the lower the premiums generally are. So, choosing the correct length can see you save a considerable amount over the years. If you are salaried or have a steady income, it is always a good idea to choose an insurance term of more than 30-40 years as that has been shown to be the ideal life insurance term length.

Compare Insurers and Policies

If you pick the first life insurance option that gets recommended to you, you might not get the best price. It is therefore important to shop around and compare different providers and do a proper life insurance comparison. Besides the price, do not forget to look at what exactly the plan covers so you get the best value for what you are paying for.

Additionally, the policies you compare should be in line with any health conditions you have. For example, if you have diabetes, you have to disclose that you have diabetes and this disclosure can lead to an increase in the amount you pay.

The good news is that whether you have diabetes type 1 or 2, there are providers who are standing by to offer you diabetes life insurance. If you need life insurance with diabetes, I’m Insured is a great place to start as they let you compare different life insurance providers and their prices so you end up with the best quotes and substantial savings. You can find more information here. Don’t forget to look around I’m Insured’s website to see how you can save on other types of insurance.

Make Some Lifestyle Changes

How healthy you are as well as your lifestyle can have a huge impact on the premiums you pay on life insurance. Being overweight, for example, increases your chances of developing certain conditions. Many life insurance companies use tables that compare your weight to your height to see how healthy you are. If you are considered healthy, then your insurance premiums might be a lot lower.

Do note that some insurance companies will ask if you have lost a lot of weight over the past 12 months. Many people who lose a lot of weight very quickly will usually gain most of it back and health insurance companies consider this.

If you smoke, you might need to quit if you want lower premiums. Smoking puts you at a higher risk for lots of medical conditions and life insurance companies consider this too. If you have quit smoking, let the insurance company know how long it has been since you quit, as this can work in your favour.

If you drink alcohol, your life insurance will likely be a lot more expensive than for someone who does not drink. This is because, like smoking, drinking can have negative effects on your life as well as increase the risk of developing some health conditions. Reducing your alcohol intake not only reduces your insurance premiums but it also helps you improve your overall health.

Get Medical Conditions Under Control

We already mentioned how having existing medical conditions such as diabetes can lead to higher insurance premiums. If you have existing medical conditions, try to get them under control to lower your premiums. This can be done by taking your medications as prescribed, making any lifestyle changes you need to and having regular check-ups with your doctor.

Stay Away from Dangerous Hobbies

If you are involved in dangerous hobbies such as scuba diving or rock climbing, you might have higher premiums even if you are otherwise healthy or do not have any issues that would make this happen. So, if you engage in dangerous hobbies and activities, be prepared to pay a lot more or do away with them if you want to reduce your premiums.

Choose Only What You Need

This happens a lot in health insurance, but it is also happening in life insurance. The insurance company might tell you about certain perks and add-ons that would help bolster your coverage. That might be true, but remember you will have to pay for any additional perks you have on your insurance.

It is therefore important to evaluate your needs and take some time to look at any add-ons or extras an insurance company offers you. If you don’t need it, don’t pay for it.

See If You Can Get Life Insurance at Work

Many companies will offer life insurance as part of their benefits package. This option might be adequate and cheaper, especially if you do not want to pay for additional coverage or very expensive plans.

Usually, this coverage is a multiple of your annual salary, which means you are well covered and don’t need an additional policy.

Do note that you are likely to lose your insurance if you change employers, so have plans to negotiate a replacement cover with your new employee or shop around for insurance plans that are comparable in price to what you are getting at work.

Buy Online

When many people buy insurance online, they often buy from agents. These agents charge a premium for offering you the service. If you want to save some money, buy your life insurance online directly from the insurance company. This way, you avoid all the additional fees that come with buying from agents and intermediaries.

Ask for a Reconsideration

The circumstances under which you get your life insurance today, as well as your particular situation, might leave you with a high premium. However, that does not mean you have to be stuck with this price forever. Some insurance companies will let you ask for a reconsideration if you improve your situation. This usually happens when you have manageable underlying health conditions such as high blood pressure or diabetes.

If you can show - and have the backing of your doctor - that you have made the right changes and are keeping things in check, you increase the chances of your reconsideration being honoured.

Life insurance is a necessity for those who need peace of mind in knowing their loved ones will be in good hands once they pass away. That said, there is a need to find the best life insurance policy at the lowest cost to ensure you get adequate coverage while not paying an exorbitant price for coverage.