Minimise Your Life Insurance Costs

If you have young children, a mortgage, or a spouse who doesn't make as much as you, your death could cause a tsunami of change in their lives at the very time they need the most financial support. Life insurance is a crucial investment to help make sure everyone has the support they need.

It can be expensive to buy life insurance if you don't know any of the usual tricks to reduce your premiums. Life insurance is based partly on factors you can't control. Here are some of the factors you can control in order to get cheaper  quotes.

1. Quit smoking as soon as possible.

The insurance rates for non-smokers are significantly better than the rates for smokers. If you smoke, you're looking at paying twice as much for your insurance! It's a good idea to quit smoking so that it's cheaper to buy life insurance and you're more likely to live longer so you can support your dependents without relying on the cover, too. Buy a policy with a short term to cover you for the next year or so, then quit smoking – you have to have not smoked at all in a year in order to be eligible for non-smokers' rates, according to most insurers. Call your life insurance company ahead of time to make sure it's a year according to their policies, too.

2. Disclose your full medical history.

Some people think it's cheaper to get life insurance if they just don't disclose their full medical history. Nothing could be further from the truth! Before paying out to your dependents, any insurance company will do a full medical check and ensure that the death was not caused by any medical factors they didn't know about. Even if the cause of death was unrelated, if they find out you hid something from them, they can deny your family's claim, leaving them just as unprotected as if you hadn't bought insurance at all.

3. Look into buying a separate policy for a spouse.

Some couples buy a joint policy that pays out upon the death of the first partner or the second, and others choose separate policies. If you both have dependents, separate policies may be the way to go so that the surviving spouse gets the payout from the first policy but their coverage will continue for dependents. Before you decide on an insurance policy for you and your spouse, discuss the pros and cons of each option.

4. Use tools to find a cheap life insurance quote.

You don't have to take the cheapest option you find, but using online comparison tools can help you compare the main providers quickly and easily. This gives you yher option to for something a little pricier that has better terms and conditions, a longer term, or more flexibility, for example. Usually, the least expensive policy is least desirable, but paying a little bit more can yield a fantastic policy. Shop around, call insurance agents, and don't be afraid to inquire about discounts. You may get a discount for having home and auto insurance with the same company, for being a senior, or for paying via direct debit, for example.

5. Don't under-cover or over-cover.

Some people get paranoid and purchase too much coverage or try to be cheap and purchase too little. It's better to opt for the right policy that provides your dependents and beneficiaries with the correct amount to cover your lost income, any mortgage payments, and so on. If you purchase too much coverage, you'll pay more than you should and if you don't buy enough, your family may still struggle. If you have cover through your employer or mortgage, you may need little or no coverage apart from this insurance. Avoiding over-covering will save you money in the short term, and avoiding under-covering will save your family a lot of money in the long run.

Buying life insurance may not be fun, but it is a necessary task if you want to make sure that your loved ones are safe after your death. You can ensure that they won't be left with any unexpected medical or funeral bills, mortgage payments, or shortfalls in household income while they're already grieving.

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