Life insurance can provide important protection to your loved ones in case of sudden death. However, to maintain this protection, those who purchase insurance must pay premiums from their bank accounts over many decades.
Fortunately, there are several ways to reduce the cost of life insurance. Here are four tips to keep your insurance premiums as low as possible
1.Give up high-risk habits
Life insurers assess the risk of having to pay out a covered claim. People who engage in dangerous hobbies such as scuba diving or skydiving are more likely to pass away while insurance is in effect. As a result, insurers may deny coverage or charge much more to people who do high-risk activities.
Skydivers, for example, might pay as much as $2 to $5 more per $1,000 of coverage even if they jump just a few times annually, while scuba divers could see premiums increase by as much as $10 per $1,000. Some insurers may refuse coverage entirely for those with these hobbies.
Now, not everyone will give up dangerous pastimes just to save on life insurance. But, anyone buying coverage obviously has loved ones to provide for so it’s worth considering whether taking on the added risk of death — coupled with the added cost of life insurance — is really worth it.
2. Maintain your health
People with health problems, such as chronic illnesses, may have to pay higher life insurance premiums, or may not be able to get insurance at all if they already have serious medical problems.
Staying as healthy as possible, such as maintaining a healthy weight and avoiding smoking, can be important to keeping your insurance premiums as affordable as possible. Of course, simply being healthy is also an advantage. Therefore, striving to maintain good health will not only lead to lower life insurance premiums.
3.Shop around for coverage
Finally, it’s important to shop around to save money on insurance. Prices for similar insurance coverage may vary from company to company. Work with an independent insurance agent or get multiple quotes online to compare costs and find which insurance company offers the best deal.
By shopping around and keeping these other tips in mind, consumers can avoid overpaying while getting exactly the insurance terms they want.
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