The cost of almost everything has risen over the past few years, and insurance rates have not escaped the increase. Life insurance claims rose significantly during the height of the pandemic and remain above 2019 levels. Insurers could soon take into account the potential long-term health effects of COVID-19, making some policies more expensive.
Fortunately, you have options to lower your life insurance premiums. Some are easier than others, but even implementing a few may help you reduce your insurance costs.
1. Choose the appropriate coverage
Like other types of insurance, there are always different levels you can choose. The trick is to find the right amount of coverage without overspending.
The simplest way to find the right coverage is to add the debts you want to pay through your life insurance policy if you die unexpectedly. Ask yourself how much money your family will need to cover bills and debts and any additional money you may need to cover the loss of income.
Next, look for a policy that covers the amount you specified, or close to that amount, that stays within your budget. For most people, choosing a term life insurance policy will be cheaper than signing up for whole life insurance. Term life insurance gives you coverage for a set period and then expires, ensuring you’re not paying for a policy you no longer need.
2. Compare price quotes
It’s easy to assume that all life insurance companies will offer the same policies at the same prices, but that’s not always the case. Just as mortgage lenders and credit card companies view the same borrower differently, insurance companies write policies differently.
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This means you should compare life insurance quotes from different companies to ensure you get the best deal. Look closely at the coverage they offer, how long the policy is valid, and the amount of the monthly premiums.
If your goal is to find life insurance at a cheaper price, one of the best ways is to get quotes from a few insurance companies and compare what they offer. Remember, you will likely be paying the premium for many years, so comparing rates can save you big money.
3. Maintain healthy habits
As with any insurance policy, companies decide how much risk to take when offering policies and set premiums based on that risk. This means that the healthier you are, the more likely you are to pay less for your life insurance.
Of course, there are some things you can’t control, such as your age or genetic vulnerabilities. But something you can control, like smoking, can significantly affect your insurance premiums.
Some companies offer life insurance without a health exam required, but you’ll usually pay more. Instead, look for a policy that requires testing. Not only will you find out more about your health, but you’ll likely end up paying less for your life insurance policy.
4. Reconsider risky hobbies
You’ll likely pay extra for your life insurance if you engage in extreme hobbies like motorcycle racing or skydiving. Although you don’t have to give up your hobbies, you may want to think about what hobbies you have and how different insurance companies view that activity.
Not all companies look at risky hobbies the same way, so if you’re diving on the weekend, you may want to spend some extra time shopping around for the best deal.
Fortunately, you can easily find the right life insurance policy for you online these days. And with many companies offering quick quotes on policies, you can quickly start comparing policies after answering a few questions.
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