Life insurance is one of the most important insurance policies you need to have, even though some consider it as a necessary evil. Its importance is based on the protection and benefits it provides. Although very important, its premium can be very high, depending on several factors including your age and lifestyle among other factors. Even so, there are 5 quickest ways to lower your life insurance premium.
Level of Coverage
The temptation to buy life insurance coverage that provides for high payout is always real. What you need to realize is that the higher the payout the higher the premium. Indeed most people who buy life insurance cover settle for policies that payout handsomely at the end of term. A critical look at some of such policies reveals that some elements of coverage are indeed unnecessary. You can quickly lower your life insurance premium by simply calculating the expenses your dependants would shoulder in case you are gone. Simply put, only buy coverage that you specifically need.
Change in Lifestyle
This is one of the 5 quickest ways to lower your life insurance premium. Life insurance companies take into account several factors when calculating applicable premium rate and one of these factors is your lifestyle. Generally, those who smoke, drink and involve themselves in risky lifestyle attract high premium rates. A change in your lifestyle such as stopping to smoke can go a long way in lowering your premium rate.
Whether buying life insurance cover or renewing your policy, it is beneficial to shop around for a company that quotes low on premium rates. There are many life insurance comparison websites that give you a platform where you can easily compare rates as quoted by different companies. In doing so, pay attention to exclusions and hidden fees in a policy that looks attractive.
Life insurance policies whose term runs for say ten years are associated with low premium rates. In contrast, short-term life insurance policies are associated with high premium rates. What you may not know is that long-term policies can be very expensive when compared to short-term policies because of the duration. Buying a short-term policy and renewing it at end of term can be an effective way of ensuring that your premiums remain low.
Type of Coverage
Different types of life insurance are available including whole-life, universal life and term-life policies. While both whole-life and universal life insurance policies tend to be good options, buying term life policy can be cheaper due to low premium rates.
The premium you pay on your life insurance policy does not need to be expensive. Implementing any or all the 5 quickest ways to lower your life insurance premium can go a long way in ensuring that you not only lower your premium but also accumulate significant savings.