Best Ways to Save Money on Life Insurance

Posted in Life Insurance

February 3rd, 2009

Comparison-shopping for everything is important, especially when it comes to life insurance. Here are some things you can do when searching for life insurance that could save you time and money.

Before searching for bargain basement prices on life insurance, you must figure out the amount of coverage you need. A good rule of thumb is to multiply your annual income by 10, and that should give you a decent figure to work around. Other things to consider when determining your policy needs is calculating the amount of outstanding debt the beneficiary should expect when you pass away.

If you are an average American aged 20-50, the most cost effective life insurance for your needs is probably term-life insurance. Term life insurance applies for a limited amount of time, and your beneficiary will only be paid if you pass during that period. As you get older, your kids will be dependent on you for their needs, so that can be a factor in deciding on the length of your policy.

Those considering life insurance are usually charged a premium based on their age, gender, health, tobacco usage and other mitigating factors. If you immediately want to save on your premium, get healthy. Lose extra weight, stop smoking, limit your alcohol intake and stop participating in risky behavior. All this information must be reported to a life insurance policy before they sign off on the deal in any case. As you make health adjustments to your lifestyle, make sure to speak to your policy manager as that can reduce the cost of your premium as well.

Be sure to also check on the financial health and ratings for your life insurance provider, and research their competition to make sure you end up with a policy that provides you with the best coverage and cost. The peace of mind you get from having a good life insurance policy is well worth the time you invest in researching it.