Although the importance of life insurance cannot be overstated, its price tag can quickly obscure the value of holding a sound policy. As a result, many individuals altogether forego life insurance or, perhaps equally as ill-advised, purchase a policy from a less than reputable company.

If you have family members that, in the event of your sudden death, would be left with any financial burdens, it is imperative for your peace of mind and theirs to have a life insurance policy ensuring that their basic expenses are met.  And even though it is difficult to obtain a high-benefit policy at a low cost, there is no shortage of avenues to pursue when it comes to reducing your life insurance premium.

1. Youth is on Your Side

Age is an important aspect that life insurance companies consider when they determine the premium for a life insurance policy. Although there are scores of young people who put off life insurance until they “can afford it” or they are older and “need it,” such logic is in error. The younger you are, the cheaper your life insurance premiums will be. As a result, if you are young and considering life insurance, now is the time to lock in a great low rate and continue the policy.

2. Competition is Key

Getting the policy that’s right for you should be a highly competitive process.  When you’re in the market for life insurance, avoid the temptation to sign up for the first policy that fits your budget. Contact as many reputable life insurance providers as possible and have them negotiate for your business. Even though such an enterprise will likely be time consuming, the amount of information you will learn could prove just as valuable as the amount of money you will likely save. Being as practical and savvy as your circumstances allow will potentially do more than anything else to secure a low premium for an appropriate policy.

3. Drop The Pounds First, Your Premium Second

There’s no escaping the scale. Many life insurance companies request applicants for life insurance to have a complete physical examination before actually obtaining a policy.

Insurance companies consider overweight applicants to be high-risk candidates for coverage. Because overweight individuals experience higher rates of heart disease, for example, gaining optimal fitness (losing weight, reducing blood pressure, etc.) will help to lower your premium along with your chances of an early death.

4. Reduce Occupational Hazards

Despite being a difficult hurdle to jump for many, changing jobs (from a high-risk occupation to a considerably safer one) can impact your life insurance premium. And, unfortunately for some, one’s occupation or profession is a substantial factor taken into consideration when determining your policy rate.

5. Take a Hard Look at Your Hobbies

Insurance companies consider more factors that you may realize when shaping your policy. If you’re an amateur skydiving instructor, for example, you’re likely to be penalized more severely than if you maintain an ant farm. Although having life insurance shouldn’t have to impair living your life to its fullest, reducing risks wherever possible is a much-appreciated gesture in the eyes of insurance providers.

6. Quit Smoking

It may be a no-brainer, but smoking is a factor that many disregard when applying for life insurance. Despite the misperception that smokers only pay a slightly higher premium than non-smokers, in reality, smoking can double or triple the price of your premium. Kicking the habit (along with any other unsavory vices) will make both your wallet and your lungs breathe easier.

7. Know Your History

Any information indicating a healthy past (for yourself and your immediately family) is vital. And taking the time to study your family’s medical history can help reduce your premium dramatically. If you can show a minimal rate of heart disease, cancer, stroke, diabetes or other chronic diseases, your insurance rate could come to modestly reflect that positive history.

8. Don’t Be Penalized for Paying

Paying for life insurance means making payments on a monthly, quarterly, semi-annual or annual basis. Although paying quarterly or monthly might be an easier fit for your budget, some companies hike your charges for paying premiums frequently. If a company penalizes you for paying more frequently, either take your business elsewhere, or manage your budget to fit a payment schedule that doesn’t cost you more in the long run.

9. Get a Renewal Guarantee

A renewal guarantee provides a policyholder with the right to start a new term after the current one expires. And although you will pay a higher premium based on your accelerating age, you won’t be required to undergo a new health exam, which, conceivably, could reveal new heath problems that would either disqualify further coverage or demand an exorbitant new premium.

10. Give Your Business to a Solid, Stable Company

The number of companies that offer life insurance is staggering enough to make one’s head spin. Instead of simply responding to a flyer in your mailbox or answering an ad in a magazine, explore policy options at companies that have high ratings from at least two or three independent rating agencies, of which there are many throughout various parts of the world. Because your policy is only as sound as the financial stability of the company providing it, be mindful to select an insurance provider with a reputable name and long track record of financial strength.

Photo by CONTIVISION

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