If you are shopping for life insurance than you want to make sure you are getting the best deal which is why we have compiled our 10 pieces of life insurance advice which can save you money. As life insurance agents we are exposed to a side of the industry which many people never get to see, and have a few pieces of life insurance advice which can help you in your next purchase. Some of these ideas will save you money when you are purchasing a policy, and some others can help those of you who already have a life insurance policy.
10. Lower Smoker Rates
If you are smoker, you are aware you will pay more for life insurance. However, if you smoke cigars or vape you may be able to qualify for non-smoker premiums with the right company. If you have been smoke free for over a year, you can also apply for a re-rating and actually obtain non-smoker rates if there is no nicotine present in your blood work.
9. Up To Date Beneficiaries
It is amazing how many life insurance proceeds go without being collected because of incorrect beneficiary information. On an annual basis, or after a “life event” it is important to update your beneficiary. This is very easy to do by contacting your life insurance company. Some companies even allow you to make the change online. There is no point in paying your premiums for years, and then having no one collect the money.
8. Don’t Have All Your Life Insurance Through Work
Many Americans have all of their life insurance through work, leaving them without coverage in between jobs or during retirement. You never know when tragedy may strike, so it’s important to own a personal policy which you have complete control over. Use your life insurance through work as a bonus if you want. The last thing you want to do is purchase an expensive policy when you retire when you could have had a policy for years.
7. Buy Young, Save Later
When you are young is the best time to purchase life insurance. Rates are so incredibly low and affordable when you are young. We so often get comments from older clients who wish they had locked in rates when they were younger. Hindsight is 20/20, so don’t regret what you didn’t do. Buy a long term policy while you are young, and save down the road.
6. Purchase Life Insurance Before You Need It
Much of our articles, and website, is dedicated to helping those obtain coverage who have some type of medical condition. Purchasing life insurance is much more difficult and expensive when you have a medical situation. This is why you should purchase a policy while you are healthy, because odds are it will be harder to get at some point in your life.
5. Consider A Blend Of Term And Permanent
The debate of term vs permanent coverage rages on, so why not protect your full need now with term life insurance, and have a smaller permanent policy which will be in force the rest of your life. This saves you premiums now, but a correctly designed plan can last you for life.
4. Comparing Is Great, But Eventually Take Action
Everyone wants to shop their policy to make sure they are getting a good deal, but then take months or even years to finally make a purchase. The best time to purchase a policy is now. I have spoke to many people who are now uninsurable, and in the past have looked at life insurance but never made the purchase.
3. Life Insurance Needs Analysis
One of the best pieces of life insurance advice is to make sure you are purchasing the right amount. Most people pick a number out of think air because they have heard “Get $250,000 in life insurance for $10 a month”, and they have no idea how much they need. Do yourself, and your beneficiary a favor and complete a full needs analysis before making your purchase.
2. Review Your Policy Annually
At the bare minimum, review your life insurance policy annually. We all know life changes, as do our financial obligations. After a quick review, you may find you need to increase or even decrease your coverage. As life evolves, so should your life insurance planning strategy. Also review the amount of time on your term policy so you don’t get hit with a huge rate hike.
1. Work With An Experienced Independent Life Insurance Agent
One of the best ways to save money, and make sure you are getting the best deal is to work with an experienced independent life insurance agent. We will be able to shop over 50 life insurance carriers to match your life insurance needs to a policy which will seem like it’s made for you. You have so many choices when it comes to life insurance, why not have someone who is an expert recommend the best option for you. Not only will this create peace of mind, it will also save you money. Isn’t this what we all want when purchasing any service or product? I know I do.
Now you know the 10 pieces of life insurance advice which can save you money. If you have any additional pieces of advice we would love to hear them!