Your Term Life Insurance Cost 7 Creative Ways to Save Money
Term life insurance costs are an affordable and least expensive life insurance options. It covers a specific period of time called a term. During the term, the customer sends in regular payments. If that customer dies during that term, the beneficiaries will receive the full amount stated in the policy.
The idea of buying term life insurance is to provide enough money for your loved ones if you are no longer around to pay the bills.
Insurers evaluate you before issuing a policy. They will be asking themselves, “What are the odds that this person will die before their term is over?” They calculate your height, weight, occupation, medical history, family history and lifestyle to determine their risks and charge you accordingly.
Creative Ways to Save on Your Term Life Insurance Cost
Although the term life insurance cost is already less expensive than most other insurance options, there are still ways to save.
- Shop for deals. The Internet has online quotes and most insurers quote rates by phone.
- Get an insurance broker. If you don’t have time to shop, or if the choices are confusing.
- Stand taller and get smaller! Height and weight are major factors in your rates.
- Limit alcohol intake. Anything that increases your chances of death boosts your payments.
- Drive safely and wear a seatbelt. A good driving record proves you practice safety.
- If you are healthy, DON’T ask for “no exam” coverage. It costs more.
- Do the right things. Eat healthy, exercise, reduce stress and avoid risky behavior.
There are a few other things that might save you money. Ask if you can pay once a year; annual fees are usually lower. Consider having one company cover all your insurance needs such as the house, car, boat, etc. This is called bundling and it usually gives you bargaining power.
When you have stopped smoking for a year, call your agent and ask if you are eligible for a discount. Also, if you have lost a lot of weight, tell your agent to see if that lowers your risk score.
Even More Savings Options
Although 20 years is the most commonly chosen term, you can get term insurance for as little as one year. Remember though, once that term is up, you have to start all over with another policy and the rates will probably be higher.
Think carefully before doing any “add-ons” to your policy. They offer greater protection but they also increase the price. But for some, peace of mind is priceless.
Re-evaluate your needs routinely and adjust your insurance accordingly. Things change and so do your insurance needs. People get married, divorce, re-marry, have kids, and then have those kids grow up and leave home. Also beneficiaries may need to be changed in cases of death or divorce. All these things make a difference in the coverage you need. Inform your insurance provider about any important changes. Re- evaluate your insurance needs routinely and adjust your coverage accordingly. The most important thing you can do is -- stay informed. It could save you a bundle!
This guest article on term life insurance cost was written by a staff writer at PT Money: Personal Finance. Visit PT Money for more money saving tips, and personal finance advice like the recent review of the best low interest credit cards.
In addition to this Term Life Insurance Cost article, there is more information on how to compare insurance rates more effectively including how to spend an affordable term life insurance quotes.
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