Ways to Save on Life Insurance
- Don’t smoke – most smokers spend 35% to 55% more on their life insurance than non-smokers.
- Purchase insurance at a younger age. The mortality cost for a life insurance policy increase with age and so does the premium. It’s a good idea to lock into a level premium while you are still young.
- Keep fit and trim – keeping the weight off reduces the risk of heart disease and other health complications. Insurance companies know this and rate accordingly.
- Maintain good credit. Statistically, insureds with good credit file fewer claims and the insurance companies will discount their policies for being financially responsible.
- Drink responsibly and never drink alcohol and drive. An insured with a DWI may pay two to three times the rate for life insurance. Life insurance companies are concerned with the possibility of accidental death.
- Avoid hazardous activities or extreme sports – for example, race car driving or sky diving increases the chance of accidental death and the insurance company may charge more.
- Research many quality insurance companies – rates between carriers may vary widely based on the situation. It’s a good idea to contact an independent broker who can give you quotes from several companies.