Life insurance is a must if you want a safer and more secure life for your family. However, not all life insurance is created equal. In fact, learning a few tips may significantly reduce your premiums.
Learn to Price Shop
If there’s one thing that drastically impacts your insurance cost, then it’s likely from where you get your coverage. The thing with insurance is that the premiums and coverage drastically differ from one company to another. Hence, to get the best deal, you need to do some shopping.
Thankfully, shopping is not difficult due to the Internet. In fact, there are already websites that will collect and compile the prices and coverage from different insurance providers, as you can see here. Taking advantage of such services will drastically reduce the time and effort to shop for the right insurance.
Get Your Insurance Online
Running an insurance company with a big office often leads to higher prices. The company has to pay rent for space, and they have to pay more employees to keep the place running. As a result, they have to recover the cost by raising their prices. Online insurance companies are much leaner.
Online insurance companies don’t have to rent expensive real estate to keep their business running, and other overhead costs are much lower. As a result, they can pass the savings to the consumer in the form of lower insurance costs.
Hence, if you want to find an excellent deal with your insurance, your best bet is to deal with online insurance companies.
Healthy Lifestyle
Life insurance gives your family a healthy amount of protection in case something happens to you. However, there are certain factors that increase your risk. For an insurance company, the more risks you carry, the more you need to compensate in the form of higher premiums. Conversely, you can also reduce your premiums by reducing the insurance company’s perceived risk of you, and one aspect that you have good control of is your health.
Hence, adopt a healthy lifestyle as much as possible. Avoid smoking and drinking habits. Eat right and get enough rest. The more you look healthier on your medical history, the less premiums you can expect. This is also a good time to point out that life insurance companies will comb through your medical history.
Be Careful with Add-ons
It’s a common tactic for life insurance companies to offer very low premiums to get you in the door. Then, they will smooth talk you into getting add-ons. If you are not careful, you may end up with costly premiums. This article is not saying that add-ons are terrible. However, you should be very careful with them as most companies will do what they can to convince you to get more add-ons. As a reminder, only get add-ons that you really need and say no to the rest.
Pay on Time
It’s highly advisable that you pay your premiums on time. There are two major reasons for this. First, late payments will usually result in penalties, which then increases the overall costs. Second, life insurance companies will note how often you are late with your payments, which will negatively affect your premiums in the future.
The list above is far from being comprehensive, but the tips should help you get started. At its core, lowering your premiums is all about making your medical history look less risky, so the insurance companies can afford to lower their premiums. Also, learning where to shop and who to deal with can go a long way.
