Life assurance is an assurance you buy for your family to tell them everything is going to be okay even if you’re not around. While it is essential that you do buy life insurance it can be quite expensive. Luckily for you, there are several ways to save money when you buy life insurance.
10 Money Saving Tips When Buying Life Insurance
1. Buy Younger
Purchasing life insurance policies when you’re younger gives you a large saving. Insurance tends to get more expensive the older you get and less healthy you get. The sooner you can afford it the better.
2. Choosing Term Policies
While financial advisers may suggest you get a whole life policy, they’re more expensive. Choosing a term policy with a period of 10 or 20 years makes more sense as you grow older. When the insurance policy matures and you’re still around, you can use the money for your retirement, your child’s marriage or higher education.
3. Find A Policy That Fulfills Your Requirements
Every family has different needs and every family can afford different solutions. Don’t buy life insurance blindly. Only buy a life insurance policy that meet your requirements.
There will be a lot of insurance companies, insurance agents, and brokers all vying for your attention trying to tell you they have the best deal for you. Don’t fall for any claims made by these companies unless you vet them out yourself. The best way to find out for yourself is to do the grunt work. Use the plethora of online resources to find the best deal for you.
5. Don’t Opt For Guaranteed Life Insurance
Unless you have a serious medical condition and you are finding it difficult to obtain a life insurance don’t opt for a guaranteed life insurance scheme. Since recorded medical conditions put the insurer at risk they charge a larger premium.
6. Stay Fit
Proving your fitness levels and health to the insurer can reduce your insurance payments drastically. This is one of the primary reasons people are advised to buy life insurance at a younger age.
7. Stop Smoking
Smoking is considered one of the worst habits in the insurance industry and you should quit if you do. Don’t do it just for the large saving it can get in your insurance policy but to improve your health overall. There is no point in trying to lie to the insurance company because you’re going to be found out.
8. Exclude Extras You Don’t Need
Insurance companies will try and sell you as many additions to the policy as they can. They’ll probably claim its to properly protect your family. While some of them might be legitimate claims, some will be a money grabbing scheme. Be wary of these extras and exclude them after you read the fine print.
9. Insure For The Right Amount
While it may be a prudent decision to try and make your family’s life as relaxed as possible, they would rather be able to have fun with you now. Don’t overstretch yourself too much thinking about the future. Think about your lifestyle and make some adjustments if you have to. If you need a policy worth $250,000 don’t unnecessarily buy it for a lot more.
10. Pay Annually
Surprisingly enough insurance companies provide recipients with a cash benefit if they premiums are paid on an annual basis rather than a monthly basis. The number of discounts you get is subject to the company you’re buying the insurance from, but the difference is noticeable.
We hope these tips help you save some money next time you’re in the market for life insurance. If you know of any more money saving hacks while buying insurance we’d love to know. Share your tips with us in the comments below.