You don’t have to skimp on coverage to buy an affordable life insurance policy. Here’s what you can do to get the coverage you require and save money on insurance premiums.
- Buy life insurance at an early age: Life insurance is usually not a priority for people in their 20s. But, the earlier you buy a policy for yourself, the lower the premium is likely to be.
- Get a term insurance policy: There are different types of life insurance policies – some offer only insurance coverage, while others also act as an investment tool. Getting a term insurance policy, which offers only life coverage, can help lower the premium cost.
- Don’t get more insurance than what you need: Many policy buyers overestimate the amount of life insurance they need and end up paying too much. A good rule of thumb to choose adequate coverage is to opt for a sum that is equivalent to 10 (or 15) times your salary.
- Compare quotes: Did you know that shopping around and comparing the premiums of different life insurance policies can help you save up to a total of 40% on the premium? While shopping around can seem overwhelming, you can compare policy prices by getting in touch with an insurance broker or using a website that will provide you quotes from different insurance firms for the same level of coverage.
- Use a broker: Many policy buyers avoid getting in touch with an independent insurance agent or broker hoping they can save money by directly purchasing the policy from the insurance company. However, going through a trusted, independent agent or broker can, in fact, help you since they will be able to guide you through the process and help you buy an affordable policy.
To save money on your policy, it’s important to choose a life insurance company that is right for you. For instance, most life insurance companies use your health condition to determine the premium for your policy. However, not all insurers will prioritize the same conditions. While one insurance company may offer a discount to non-smokers, others may offer discounts to recovering alcoholics or those who’ve recently lost weight. So, in this case, you’ll need to opt for an insurance company that is accommodating to your health situation.
