Affordable Life Insurance Policy Strategies to Save Money

I trust you are already aware that an affordable life insurance policy should be a mandatory investment towards your family's future financial security. In today's lesson, I am going to show you a few strategies to save money and help your household budgeting process.

    1. Avoid guarantee life issue policies. They are usually very pricey and for good reasons. Those companies that sell these policies guarantee issuance, even for those with physical disabilities who would typically not be accepted by other life insurance companies.

      Cost Cutting Tip:

    • Are you in good health? Get with a regular company for a more affordable life insurance policy. However, the guarantee policy might be the best option for you if your health is not good. Check the guidelines.

    2. Quit smoking or do not start. There is typically a 25% to 50% price increase for those who use tobacco. Why? You are more expensive to take care of when the typical smoking related ailments kick in.

      Cost Cutting Tip:

    • This smoking rating typically can be removed after a full year has gone by without tobacco use, lowering the all overall premium cost. Check with the company's web site about their specific policy or call up a salesman and ask anonymously. This could turn out to be one of your best strategies to save money on an affordable life insurance policy.

    3. Compare prices. Each life insurance company differs in their health underwriting policy. While a well managed health condition will not affect the premium with one company, another might charge an extra premium and still another will deny coverage.

      Cost Cutting Tip:

    • As you compare rates, make sure you are doing so with the same exact information. This will ensure an accurate comparison to be able to make a more informed decision.

    4. Get to your ideal weight. As you shop for the most competitive company and most affordable life insurance policy, your weight will become a factor. Money is saved when you are in the statistical average for your gender and age. Do not take this personally, it is simply a reality.

      Cost Cutting Tips:

    • Check with each company about their weight policy. Know that after a specific amount of extra pounds, the cost of premiums rise.

    • If you happen to be statistically overweight, ask the agent to see the rating and premium chart. Will losing 5, 10, or 20 pounds make enough of a difference in premiums to give you the motivation to lose weight? Do so before the sales representative weighs you and sets the premiums for your policy.

    5. Do not only look at premiums. These policies that cost less premium wise may end up costing more over the long haul. It is typical that the better the A.M. Best rated companies who charge more in premiums actually cost less long term. Why? If the lower rated and cheaper company goes out of business, then you are not only out of coverage but also out of money if you choose a policy other then term life insurance.

    Also, if you are now all alter or may have contracted a health problem, your new premiums with a different company will be higher, it may be much more difficult to obtain new insurance, or you could be denied.

      Cost Cutting Tip:

    • Check out life insurance ratings before purchasing any policy or even talking with those slick salesman. Go with the company who has a proven track record of service and hassle free pay-outs.

I have given you five very common strategies to save money and help you reduce costs for purchasing an affordable life insurance policy. By shopping around, practicing good health habits, and sticking with a company and agent who has a reputable track record, you end up saving a whole lot and make it easy on your household budgeting efforts while adequately providing for your family's future financial needs.

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