Many factors influence the price you pay for life insurance. This includes your age, your health, and your lifestyle. This means that the price you pay for your life insurance will be more if:
• you are older,
• you have health problems
• you are a smoker or you have a drinking problem
If you can change any of the above factors, you can lower the cost of your life insurance. Well you cannot control you age. That’s beyond your control. The only way you can use age to lower your life insurance policy is by buying life insurance at a younger age. A younger person pays less for life insurance than an older person. What about your health and smoking habits? You can certainly exercise control over them. Take care of your health. Start exercising. Loose weight. Overweight people generally pay more for life insurance. Eat a healthy diet. If you are a smoker, consider quitting. Many insurance companies charge smokers double the nonsmoker rate for insurance. If you have a drinking problem, you need to address the problem. People with drinking problem are considered high risk and generally charged a higher premium. Never lie about your health or smoking and drinking habits to the insurance company because if you die due a concealed health problem or smoking or drinking disease, the insurance company can opt not to pay your death benefits to your beneficiary. The very purpose of buying life insurance will be defeated.
Besides trying to control these factors, there are other things you can do to lower your life insurance costs. Round up and you could end up paying less. You will actually pay less for a little more life insurance as you approach multiples of $250,000 in coverage. Ask for the rate per $1000 of coverage. This rate tends to drop after a certain level. Use this figure to get the most life insurance for the least money. For example, you could end up paying less for coverage of $250,000 than for coverage of $240,000. Try and avoid the riders. Most riders are unnecessary expenses to cover events that are almost guaranteed not to happen. Opting for single premium payment over convenient monthly payments can also save you money. Compare the single payment price to the total cost of the monthly payments. Do the math, and decide whether the convenience is worthwhile. Finally shop around. Obtain quotes from different insurance companies and then pick the best deal.
