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How to Save on your Life Insurance

By Compuquotes Team on March 26th, 2008

Many people feel that they simply can't afford life insurance... it's just one more extra expense for something you may not even need. However, if you have dependants - a partner and children - then getting life insurance is important to ensure they'll remain financially secure if the worst should happen. These days, it's possible to save money on life insurance and make it more affordable, without compromising on the quality of your policy.

Shop Around

Just as with any other major purchase, you'll get a better deal and get insurance that meets your needs by shopping around and getting several quotes before you make the final decision. There are many websites that allow you to compare policies from several companies at once quickly and easily.

No-commission Policies

Look for 'no-load' or 'low-load' policies that have fewer built-in expenses such as commission and marketing fees-these policies often have lower premiums and they don't compromise on quality. Look for these types of policies through a financial advisor-they'll change a flat fee for their services, rather than working on commission like insurance agents do and that typically means you pay less overall. Some insurance companies also sell these policies to customers.

Capitalize on your Good Health

When you're young and healthy-or healthy at any life stage-you're at an advantage when it comes to buying insurance. Don't be tempted to put it off because you're healthy now. Your insurance is what will protect you and your family if your health does fail-and by then it's too late to get a lower-cost policy. And if you're in good health, don't get a 'guaranteed issue' policy that lets you avoid taking medical exams. They're considered high-risk policies by insurance companies and the premiums are much higher.

If you are in a situation where health problems are making it difficult to get affordable insurance, the best way of saving money is, of course, by improving your health and overall physical fitness. Smokers pay almost three times as much in premiums than non-smokers, and if you're overweight that can increase your premiums too. If you have a pre-existing medical condition such as hypertension or diabetes, you can improve your chances of saving money by showing your insurer that you are responsible when it comes to managing your health.

Get Insurance that suits your Stage in Life

Your life insurance needs will change over time-just as you'll need more insurance once you start having a family, you'll likely find that you can reduce the value of your policy as your children grow up and become financially independent. Experts suggest that you should review your policy every three years to ensure that your policy is suitable for your lifestyle and circumstances. For example, if you have a mortgage your life insurance needs will likely drop as you build increasing amounts of equity in your home.

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