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How to Save Money on Life Insurance

by Andrew Freiburghouse

So, you need life insurance, and you know that in order to get it, you have to pay for it. But you don't want to overpay for life insurance. But you also want a really good plan. Sound like a dilemma? It can be, but there are specific things that you can do so as to maximize your chances of getting a good plan at a good price. Here are three suggestions:

  1. Best Rates and Terms: Shopping for Life Insurance
    Heard that before somewhere? It's true. Shopping around is by far the best way to get a great deal on insurance, whether life, health, or auto. The insurance business has become extremely competitive, with companies fighting for customers. Meanwhile, the Internet has made obtaining pricing information a breeze. Many customers find that buying all types of insurance from one company results in savings, but there's never any harm in looking. Especially when it's so easy to do.
  2. See If Your Employer Offers a Life Insurance Plan
    Superstores like Costco and Wal-Mart aren't the only places to see the power of bulk purchasing in action. Group rates for term life insurance are another. Many employers have some sort of plan for life insurance. If it seems like nobody knows what that plan is, not even the human resources department, that doesn't mean the plan doesn't exist or could not save you money versus buying life insurance on your own. Do a little digging.
  3. Live a Healthy Lifestyle, Save on Insurance
    Recently, the American Academy of Actuaries revised its table to reflect a trend toward longer life spans in this country. This is good overall for life insurance rates. However, your specific risk profile is more important if you're looking to get a good deal on life insurance. If you smoke, enjoy high-risk hobbies, or work in a hazardous environment, your risk of dying is greater and it will be reflected in your premiums. But even those who have had bad habits their whole life can change them. And often life insurance companies will give you a break if you can show that you've adapted a healthier lifestyle or gone a certain period without health problems.
So to get the best terms on your life insurance policy, make your risk profile as attractive as you can, shop and negotiate for the best deal you can, and see if your employer can provide some or all of the coverage you need.

Insurance Information Institute
JD Power

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