UPDATED: Mar 26, 2020
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These are some of the best ways to save money on your term life insurance policy.
Life insurance companies look at your age and overall health when determining how much your premium should be. The sooner you buy term life insurance in your life; the lower your premiums will be. You can save money by purchasing a term life insurance policy when you are in your 20’s or early 30’s because you are more likely outlive your policy and therefore will be given a lower premium. Not only that, but you are more likely to have better health at this age which can only increase your savings.
The best way to save money on your term life insurance policy is to be healthy. If you are eating right and dieting, you are on the right track. If you have had any medical problems or have a family history of medical problems, be sure you are seeing a doctor regularly. Life insurance companies want to know that you are healthy and are taking the proper measures to remain that way. The healthier you are, the less risk it is for them to insure you and the more likely it becomes that you will receive an affordable premium.
Pick Your Policy
There are two main types of life insurance. There is term life insurance, and there is permanent life insurance. Each one has benefits and disadvantages. Term life insurance covers you over a specific amount of time and is your least expensive option. Permanent life insurance, such as Universal life or Whole life, may cover you throughout your entire life and is the more expensive option. Knowing the difference can help you immensely in the decision-making process.
Pick Your Beneficiary
When you get term life insurance, you will want to name a beneficiary. The beneficiary is the person or entity that will receive the death benefit if you die during the term of the policy. Typical beneficiaries are a spouse, adult children, parents, trusts and more.
If you are listed as the owner of your insurance policy, any proceeds from the policy can be taxed as part of your estate. Insurance agents and financial advisers suggest that you assign ownership of your life insurance policies to the beneficiary or a trusted executor to avoid the added hassle for your loved ones.
Use an Insurance Broker
Insurance brokers are independent insurance representatives. They can save you money because they deal with multiple insurers and can choose between companies to find the best deal for each customer. If you deal directly with an agent for one life insurance company, your options for coverage may be limited. QuickQuote will help find the best company for you without bias. Get your free term life insurance quote and start saving on your premium today!