Wednesday, February 12, 2014

3 Ways To Save On Term Life Insurance



3 Ways To Save On Term Life Insurance

Once you've decided to purchase a term life insurance policy to protect your family from financial hardships, you'll want to look for ways to save money.  Your premiums do depend on your age, smoking habits, and health, but there are still ways to save on your term life insurance, even if you aren't in perfect health (or indulge in a cigar now and again).  Here are three things you can do to save:

1. Ask for a lower rate.  If you're that occasional cigar smoker, you may get quoted the same rate as a two-pack-a-day smoker.  If you write a well-reasoned letter to your insurance company, you may be able to qualify for a lower rate than you originally thought.  That can apply for any condition - explain it, and include medical documentation if necessary.

2. Buy more coverage.  Yes, that's right - if you're going to buy $240,000 worth of life insurance, you might as well just buy $250,000.  That's because insurance companies are more likely to adjust pricing in $250,000 increments.  With one insurance company, a 35-year-old male nonsmoker may pay $1.02 per $1,000 of coverage up to $249,000 - but could end up paying only 92 cents per $1,000 of coverage from $250,000 to $499,999.  When you're sitting down to purchase your term life insurance, be sure to ask about how much it costs per $1,000 of coverage and if you can save money by purchasing more in life insurance.

3. Find an insurance company that specializes in what you need.  If you have diabetes or a heart condition, for example, you may end up paying a lot more in premiums from companies that lump all diabetics together as one risk group.  But if you find an insurance company that classifies diabetics by type, you may save quite a bit on premiums.  Shop around, and don't be afraid to use an insurance agent to help you find a specialty insurance company that bases premiums on more than just an umbrella diagnosis.
The bottom line is term life insurance does not need to be prohibitively expensive.  With some shopping around, asking the right questions, and arming yourself with information on how the process works, you can choose coverage that will protect your family and assets and provide for them in the event of your death.  It's never too late to buy a policy, so choose wisely, and choose carefully. 

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