Reader’s Question:

I currently own a 2-year old life insurance policy but I’m not satisfied with the premiums I’m paying. Can I do something to get cheaper life insurance rates?

Baron

Lafayette, IN

Yes, the good news is that there are still some effective ways to get savings on your life insurance coverage. Here are a few tips that could prove quite useful to you:

1. Make Sure You Have the Right Policy

Paying for the wrong kind of policy is an utter waste of money, but you’ll be surprised at how often this happens. If you just need coverage for a certain period of time, such as while raising a family or paying your mortgage, then go with a term life insurance plan. Want to accumulate substantial amount of money and have permanent coverage? Then a whole life insurance plan is recommended.

2. Take Advantage of “Price Breaks”

With most life insurers today, choosing a higher coverage amount (a.k.a. death benefit or face value) can actually give you lower rates. So if choosing between a $350,000 policy and a $450,000, going with the latter can actually save you money.

3. Live a Healthier Lifestyle

Taking care of your health and quitting smoking can do real wonders in keeping your rates affordable. There is no better time to start this than now.

4. Go with Annual Payment Plans

If your life insurer offers this, consider paying your coverage a year in advance. This entitles you to get discounts or lowered premiums.

5. Look for Discounts

Discounts abound, and you want to make sure to ask your insurer about those you might be eligible for. This is an almost effortless to get savings out of your life insurance bills.

6. It Wouldn’t Hurt to Shop Around

There are hundreds of life insurance companies out there and it would be a good idea to run a free quote check from insurance comparison portals (like this website) to know what is being offered. There are times when the only way to get cheaper life insurance is to switch carriers.