Getting life insurance can provide peace of mind knowing that your loved ones will be taken care of in the event of your passing. However, many people are concerned about the cost of life insurance premiums. Fortunately, there are several things you can do to help you get the best rates on life insurance. In this blog, we'll explore some tips and tricks for getting the best rates on life insurance.
Improve Your Health Habits:
One of the biggest factors that affects the cost of life insurance premiums is your health. Insurance companies consider factors such as your weight, blood pressure, cholesterol levels, and smoking status when determining your rates. If you improve your health habits, such as quitting smoking for 12 months or longer, losing weight, and improving your diet and exercise routine, you may be able to qualify for lower rates.
Get a Medical Exam:
Another way to potentially lower your life insurance rates is to allow the insurance carrier to conduct a medical exam. Insurance companies may offer lower rates to individuals who have a clean bill of health. The results of a medical exam can provide the insurance company with additional information to make a more accurate assessment of your risk, which may result in lower rates.
Shop Around:
It's always a good idea to shop around when looking for life insurance. Different insurance companies may offer different rates based on their underwriting criteria, especially for those with a history of health concerns. Don't be afraid to ask for quotes from multiple companies and compare the coverage benefits and rates. You may find that one company is able to offer you a better deal than another.
Choose the Right Type of Policy:
The type of life insurance policy you choose can also affect the cost of your premiums. Term life insurance policies typically have lower premiums than permanent life insurance policies, such as whole life or universal life insurance. Additionally, the length of the policy term can affect the cost of premiums, with longer terms generally costing more than shorter terms.
Remember to weigh the cost of a policy against the benefits of a policy. For example, although term life insurance has a lower monthly cost initially, a whole or universal life insurance policy may build cash value over time, and you may be able to recapture 100% of the premiums you've paid at a future date.
Consider Maximizing Group Life Insurance:
If your employer offers group life insurance as a benefit, it may be worth considering in addition to an individual policy. Group life insurance policies are often more affordable than individual policies because the risk is lower to the insurance company, as group life insurance ends when employment ends. This means the group policy is typically covering individuals that are younger in age that are less likely to make a claim. Additionally, some group life insurance policies may not require a medical exam, making it easier to qualify for coverage, and may offer a low cost spousal and child benefit.
My advise is to always maximize your group life insurance policy for you and your family, then shop around and add additional coverage via an individual policy. This insures that your family will still be protected in the event of job lose, job change, or retirement.
In conclusion, there are several things you can do to help you get the best rates on life insurance. Improving your health habits, getting a medical exam, shopping around, choosing the right type of policy, and considering group life insurance can all potentially help you save money on premiums. Remember, it's important to find the right balance between affordable premiums and the coverage you need to protect your loved ones in the event of your passing.
I invite you to use our life insurance rate calculator to compare rates from over 25 highly reputable carriers and see just how affordable protecting your family can be.