How to Save on Your Life Insurance Premium

Life Insurance premium payments can be expensive, especially if you have more than one policy to pay or you are paying on behalf of multiple people, such as family members.

There are ways to cut down the cost of your life insurance premiums, such as shopping around for lower-cost companies and increasing your coverage amount to lower your premium costs per month. These methods can save you hundreds of dollars per year, making life insurance much more affordable.

Compare Policies

Term life insurance is the most popular type of life insurance, but it’s not the only kind. Whole life, universal life, and variable universal life are a few other options. Each has its own set of pros and cons, so it’s important to compare policies before buying. This is going to save you a lot of money on premiums in the long run.

Consider Co-Signers

One way to reduce the cost of your life insurance policy is to add a co-signer.

This is someone who agrees to be responsible for the policy if you die. The insurer will take into account the financial stability of the co-signer when setting the premium. This can help you get a lower rate.

Consider Increasing your Deductible

One way to save money on your life insurance premium is to consider increasing your deductible. This means you would pay more out of pocket if you need to make a claim, but it could save you money on your premium.

Shop around and compare rates

Always make sure you shop around and compare life insurance rates from different companies. Make sure you’re getting the best deal possible.

Note: It is always advisable to work with a licensed life insurance broker to ensure you are getting the highest value for money at the most affordable rates.

Read our blog to know more: The Benefits Of Purchasing Life Insurance Through A Licensed Life Insurance Broker

Choose a policy with level premiums

This means that your premium will stay the same throughout the life of the policy, rather than increasing as you get older. This can save you a lot of money in the long run.

Look into Term Life Insurance

Term life insurance is the most affordable, basic and straightforward type of life insurance. It provides protection for a set period of time, typically 10, 20, or 30 years.

If you have no dependents, it’s an option worth considering, since term policies are cheaper than whole-life policies. For first-time life insurance buyers, this is the best option to go for especially on a budget.

In general, whole life insurance offers greater financial protection and flexibility; however, term plans may offer better rates for those with less financial assets or income and fewer debt obligations.

Stop smoking

If you’re a smoker, you’re probably paying way too much for life insurance. In fact, smokers pay an average of 50% more than non-smokers for term life insurance. But there’s good news: quitting smoking can dramatically lower your life insurance rates.

Recommended Read:

What smokers must know about Life Insurance purchase

Conclusion

To sum up, there are quite a few things you can do to save money on your life insurance premium. First, shop around and compare rates from different companies. Second, consider a term life policy instead of a whole life policy. Third, make sure you’re not overpaying for coverage by getting only the coverage you need.

Fourth, stay healthy and don’t smoke, as this can increase your rates. Fifth, take advantage of discounts offered by some companies. And finally, be sure to review your policy regularly to make sure it still meets your needs.

Talk to us to know more about affordable life insurance rates. Our advisors have over 30 years of experience dealing in insurance and investment products for businesses and individuals in Mississauga, Brampton, Hamilton and Toronto.