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How to Save Money on Life Insurance

Moneymagpie Team 4th Jul 2022 No Comments

Reading Time: 3 minutes

The topic of saving money is as important as ever, especially regarding insurance options. With the right knowledge, a few changes and savvy buying options can help save you hundreds of dollars every year – all while enjoying the assurance of life insurance.

Keep Up Your Health

One factor that plays a big role in your life insurance rates is your health! While you can’t prevent every health ailment, you can certainly do your best to stay in good health following simple tips like eating healthy and moving your body.

It can also mean quitting bad habits like smoking, which puts you at further risk for health complications down the line. The better your health is, the better your quote will be for life insurance. This is because you minimize the chance of early death by being as healthy as possible, and there is less risk for the insurance companies to take you on as a client.

For the best terms possible, you might want to shop for a plan that requires a medical exam. If the doctor determines that you are healthy, life insurance companies are happy to work with you for better rates.

Group Insurance Options

Group life insurance policies can be used in many ways. You’ll most likely benefit from lower prices with group life insurance, whether it be a family with joint coverage or the very common employer-sponsored coverage.

If you can secure life insurance through your employer, that option will be most cost-effective for you as it is often subsidized. Keep in mind, though, that the coverage, including benefit amounts, is usually limited to your employer’s wishes.

If your employer fronts much of the cost for a life insurance policy, but it is not quite enough for your needs, it may be time to shop around for supplementary insurance coverage.

It is also wise to compare life insurance quotes online to get the very best deals available to you.

Annual Payments

When a person can pay their premium annually rather than monthly, this generally means a cheaper rate for the client, and life insurance is no different. Life insurance companies love clients who can pay their entire premium at once, giving the company more freedom on their end.

If you pay early or all at once, you may be able to avoid additional fees that are tacked on when paying monthly. While not every insurance company will offer this benefit, finding one that does can be worthwhile in the end if you can afford to.

Term Life Over Whole Life Insurance

There are two general types of life insurance: whole and term. A whole life policy will cover your entire life span from the point of purchase. On the other hand, term insurance will only last a predetermined amount of time. Oftentimes, this is a ten-to-fifteen-year agreement.

When the time is up, the policy is no longer effective. As you can imagine, term life insurance is significantly cheaper because the life insurance company assumes less risk. While a whole policy guarantees a payout by the insurance company at one point or another, a term policy does not.

There are trade-offs between a whole life and term life insurance policy, so it’s essential to weigh the benefits with your lifestyle to ensure that term is the right choice.

The Bottom Line

Life insurance can be adjusted to fit your lifestyle needs and budget. Whether taking advantage of what your employer offers as a benefit or shopping around for terms that fit your needs, take the time you need to find the best fitting plan for your lifestyle.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. 

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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