Insurance Companies

Recession

Five Easy Ways to Lower Your Life Insurance Premium

in Life Insurance Cost

Are your life insurance premiums becoming a strain on your budget? Are you thinking about canceling your policy to save some money? During a recession, money seems tighter than ever and many families look for any way they can to save money. Believe it or not, people actually cancel their life insurance policies to free up some money each month or they just stop paying out of necessity. You’ll probably agree that life insurance is an important part of your family’s financial house, so canceling your policy or letting it lapse should be the last thing you do.This article will go over five easy ways to lower your premiums so that you can save money.

Shop Around First

Above all else, you should shop around when you buy a life insurance policy. The internet is the perfect and most easy way to compare term life quotes and whole life quotes. Comparison shopping is important when you first decide to buy a policy or even after you have one because you never know if you can find a cheaper rate. Life insurance carriers have their own unique requirements and guidelines so their quotes can vary by as much as 50%. If you shop around and work with an experienced agent, you can be sure that you choose the absolute lowest priced policy four your situation.

Choose Term Life Insurance

There’s no argument that term life insurance is the most affordable type of coverage. If you have a whole life insurance policy and the premiums have become unaffordable then you could easily save hundreds or thousands of dollars per year by opting for term life instead. You’ll be able to get the same amount of coverage or maybe, which is the most important part, for much less money.  Make sure you choose the right term to cover your needs.

Stay Healthy

Your height and weight play a big part in how much your life insurance policy will cost you. Insurance carriers calculate your BMI (body mass index) using your height and weight. The more you weigh, the more risky you are viewed by the carriers. That’s because statistics show that people who are overweight and obese have a higher likelihood of developing high blood pressure, heart disease, diabetes, and other health problems. If you’ve already bought a policy and you received a higher rate because you are overweight, then it’s not too late to save money. If you get your weight into a healthy range, many carriers will lower your premium. This might require another physical to verify your weight.

Talk to An Agent

Now that life insurance policies are available online, many people are choosing to stay away from life insurance agents. For some reason, agents have a scary reputation for being pushy or aggressive, but they can actually save you a ton of money because they have the inside knowledge that you need. A knowledgeable agent will give you advice about which companies have the lowest rates for you.  There are so many variables that affect your life insurance premium and no two carriers view them the same. Opening up to an agent about your smoking status, health issues, and anything else that might affect your rate will end up saving you money. If you want to speak with an experienced insurance professional about your needs then call toll free 1-877-801-4402 to get some advice as well as current rates over the phone.

Get Started As Soon As Possible

The sooner you get your life insurance policy, the cheaper it is. This is because carriers base a majority of your premium on your age. The older you are, the more it costs. Many people put off the decision to buy life insurance for years and years. Don’t get caught up in this way of thinking because it will only cost you more money for the same coverage. If you are shopping for life insurance then get a free quote today. You can compare many policies, which means you’ll save money.

Related Posts:

  • How to Find the Best Life Insurance Rates Online
  • Life Insurance at 52 Years Old
  • How to Save Money on Your Term Life Insurance Policy
  • How Much Will Your Life Insurance Cost?
  • Term Life Insurance at 55 Years Old

    • Whole Life Insurance In A Down Economy

    in Dividends, Whole Life

    I’ve had four people call me this week and tell me that they were shopping for term life because they can no longer afford whole life insurance in this down economy. One gentlemen borrowed from his cash value. His policy is about to lapse because he can’t afford the interest payments on the loan. Another gentlemen was laid off from his job as a marketing manager. One woman in her 40’s said that she just doesn’t want to make the payments anymore now that she knows how much more she can get  if she had term life. And one last young man simply said he didn’t know what he was doing when he bought whole life and now that he has 2 children, his expenses have gone up, and the cost is no longer affordable.

    Four different people who have all been affected by this down economy. They all want to make sure that their families are financially protected, but they can no longer afford their expensive whole life insurance premiums. Let’s take a closer look at what options are available if you can no longer maintain your whole life premiums.

    Cash out your policy. Take out whatever cash value is available and stop paying your premiums. You will owe taxes on the cash value withdrawal if it is more than the premiums that you paid into the policy. You can use that cash value to purchase a single premium whole life or term life insurance policy or you can get a more affordable term life policy and make the payments annually or monthly.

    Reduce your death benefit. Some carriers will allow you to reduce your death benefit based on the cash value in the policy. You can stop paying premiums and you will still have life insurance coverage, though a smaller policy.

    Let your cash value pay your premiums.     If you think you’ll be out of a job temporarily then you might be able to allow the cash value in your policy pay your premiums. This all depends on if you have the necessary rider on your policy. The premiums paid from the cash value would be considered a loan and will have to be paid back in the future.

    These are just a few of the options that you have. Before you decide to cash out or let your life insurance policy lapse, you should consider your current financial situation. Is the inability to make your premiums payments temporary? Will you be able to make the premium payments again once you are back on your feet? You also have to consider your life insurance needs. If you don’t have enough coverage with a whole life insurance policy, then you should probably consider term life instead, because you’ll be able to get more insurance coverage for less money.

    One last thing to consider is your health. If you have some health issues such as cancer or heart disease then it might be difficult to qualify for an affordable term life policy. Be sure to speak with an experienced agent about your situation before you let your current policy go. You can also get free quotes to compare other types of policies.