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11 Ways to Reduce Life Insurance Premiums

rainy day fundHere are 11 ways you can reduce your premiums while making certain you’re properly insured.

  1. Don’t buy more than you need. More often than not, Americans underinsure their lives. Still, there are many people who buy more life insurance than they really need.
  2. Consider term insurance. Permanent cash-value life insurance policies can have a legitimate role, especially when developing strategies to minimize estate taxes. However, you may save significant sums over your lifetime by purchasing term insurance.
  3. Shop around. Rates for the same amount of insurance can vary quite a bit from one insurer to another. It pays to consider quotes from a number of different insurers before deciding on one to write your policy.
  4. Lose weight. Dropping pounds can be one of the most effective ways to reduce your premiums. Lose enough, and you might be able to renegotiate your rates with your existing insurance company.
  5. Adopt a healthier life style. You can also gain leverage for lower premiums if you stop smoking and reduce how much alcohol you drink.
  6. Drive safely. Some insurance companies will also discount your premiums if you maintain a clean driving record.
  7. Keep out of danger. Most insurance companies charge more if you work in a dangerous occupation. The same goes for dangerous hobbies, like skydiving, hang gliding, or racing cars, airplanes, or boats. If lower insurance rates are important, it may make sense to give up those hobbies or change your job.
  8. Use one policy for two or more people. Instead of taking out separate policies for your spouse and children, consider adding them to your policy as a rider. The rates may be cheaper, and you may also save on administrative costs.
  9. Inquire about family discounts. If you have special reasons for taking out separate policies for members of your immediate family, ask whether your insurer offers a discount.
  10. Carefully consider riders. Riders are supplements to a life insurance policy that offer additional benefits. Most of them come at additional cost, however, so consider limiting them if keeping your premium low is important.
  11. Pay your premium annually. It’s tempting to smooth out your bill payments by opting to pay your bill payments by opting to pay your life insurance premiums monthly, but insurers charge less if you pay the full annual premium once a year.

Please call if you’d like to discuss this in more detail.

Copyright © Integrated Concepts 2013. Some articles in this newsletter were prepared by Integrated Concepts, a separate, nonaffiliated business entity. This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

 

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