While 54% of Americans currently own life insurance coverage, this figure is 10% lower than 10 years ago, according to the Life Insurance Market and Research Association (LIMRA). Even worse, about 20% of the current policyholders are underinsured, mainly because they perceive life insurance to be expensive. While life insurance can be expensive, there are ways you can lower the cost of your coverage.
Here’s a look at ten ways to make affordable life insurance a reality.
Shop Around
According to the Insurance Information Institution (III), there are currently more than 5,900 insurance companies in the U.S. With each having different life insurance packages, high chances are that you will get a coverage that fits in your budget if you compare prices.
Purchase Life Insurance through Your Employer
Most employers in the U.S. offer group life insurance to their employees by deducting a small amount from their salaries to pay for premiums. Generally, such life insurance policies are more affordable compared to individual coverages. You can purchase life insurance through your employer for easier payment of premiums as well as affordability.
Ask for Discounts
A majority of insurance carriers offer discount programs on life insurance coverage. These include bundling insurance packages, healthy living programs, and customer loyalty programs. Take advantage of these programs in order to purchase cheap life insurance.
Purchase Life Insurance While You’re Still Young and Healthy
Insurers calculate the cost of life insurance based on factors such as age, health condition, and gender, per the National Association of Insurance Commissioners (NAIC). To lower your life insurance costs, ensure you buy the coverage when still young and healthy.
Choose Term Life Insurance
Since term life insurance provides fewer benefits for only a specific period, say 25 years, it is usually cheaper than whole life coverage. If you intend to save on life insurance, then the term life option will be the best for you. Take note that you can later convert it to whole life if you wish.
Maintain Healthy Lifestyle Habits
Insurers waive life insurance premiums for people who maintain a healthy lifestyle because the risk is significantly low. According to the Harvard Medical School, healthy lifestyle habits include eating healthy, getting enough sleep, and regular physical activity.
Use the Renewal Guarantee Benefit on Term Life Insurance
The renewal guarantee enables you to renew your term life insurance without necessarily undergoing a medical examination. This means you can continue paying lower premiums even if you have an underlying medical condition.
Pay Premiums on Time
If you fail to pay your life insurance premiums on time, the insurer may charge you a fine, which will increase your premiums. To avoid paying extra money, always pay your premiums on time.
Only Purchase the Amount of Coverage You Need
On top of basic life insurance, insurance providers may offer guaranteed insurability, accelerated death benefits, and long-term care, as published by Forbes Media. If you include these add-ons, you will pay additional costs, so only purchase the ones you need.
Pay Premiums Upfront in Lump Sums
If you pay life insurance premiums in lump sums, such as annual premiums, the insurance company may offer you a discount. In other words, monthly premiums are more expensive than annual ones.
If you’re looking for low-cost life insurance coverage, you can use these methods to make affordable life insurance a reality. For more information about life insurance coverage, contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.