Many people do not realize just how important it is for them to have life insurance. If something were to happen to you today, your family will be left with nothing if you do not have a life insurance plan. One of the main reasons why people do not take out this type of policy is simply because it is too expensive and a burden to their already-tight budget. Fortunately, there are several ways for you to save money on your life insurance policy so that it can be a little more affordable for you.
1. Quit Smoking
Life insurance companies look at their clients are liabilities. It is a known fact that smoking lowers life expectancy by up to 10 years. Because of this, life insurance companies tend to raise rates to those who are regular smokers. It is not uncommon for smokers to pay a lot more on their life insurance premiums than individuals who do not smoke. Quitting smoking is not only beneficial to your overall health, but it can also help you to save money on insurance that your family will need in the event of your passing. There are many stop-smoking programs and medications out there for you to try if you’d like to break this habit.
2. Get in Shape
Losing weight and becoming healthier is another way to lower life insurance premiums. Many companies that offer this type of coverage will require their customers to go for routine physical examinations to make sure that the person in question is not a liability. If you are obese and in poor health, your company is going to know about it and your insurance rates may go up. By losing weight and improving your health, you will notice a significant drop in the cost of your policy. Again, this is due to the fact that you will no longer be a liability for the insurance company.
3. Pay Electronically From Your Bank Account
One of the easiest and most convenient ways to lower life insurance premiums is by setting up your account online with the company and allowing them to automatically take monthly or annual payments out on your behalf. Most companies will offer a discount on your insurance coverage when they are able to take out their payment without first needing to send a bill by mail or contact you by telephone if you forgot to make the payment. Allowing the company to take the payment out automatically also helps to save you a penalty fee if you forget to pay on time.
4. Pay the Annual Policy in Full
Most life insurance companies offer one year’s worth of coverage. The company then splits this amount up into monthly payments for you to pay on a regular basis. One way to lessen your overall premium is to simply pay the entire amount of the policy in full. This helps to avoid tacked-on fees that many companies add to the monthly payments that they send out.
Nathalie is a frugal living expert from Sydney, Australia. She says that there are many ways for people to save money in everyday life and hopes you find these tips helpful for you life insurance premiums. Nathalie also recommends that you compare life insurance quotes between companies to get the best deal.