Have you been looking for life insurance quotes online? If yes, you probably have a bunch of quotes on your PC that you are staring at with apprehension.
It seems like life insurance is going to cost you more than you thought. Are you thinking of chucking your plans of purchasing life insurance all together?
If you’re thinking those thoughts, hold for a moment. I exactly know how you feel.
But let me tell you something… the decision to chuck purchasing life insurance just because the premiums given on the quotes are quite expensive and beyond your budget is stupid.
The quotes that you find online should never be trusted and you should always contact a licensed insurance agent and read through the offer documents of the individual insurance policy to ensure that you are getting the best rate for the cover you are choosing.
But if your life insurance is still expensive despite of double-checking the paperwork, don’t despair. There are some ways to save on your life insurance quotes. In this article, we’re going to talk about some methods that you can use to save on your life insurance premiums…
1. Apply at the right age
Your age and health condition also plays a crucial role in the costs of your life insurance premiums. The earlier you apply, the greater the cover you get and the less you have to pay. There are many people who never opt for life insurance until they are well past their 30s and have kids growing up.
Please don’t make such a mistake. We strongly recommend that you start in your early 20s. If you don’t want to commit yourself to a complete long-term plan, choose a short-term plan and then switch over once you’re ready to start a family.
2. Choose to pay annual premiums
Most insurance companies provide you with monthly quotes and quarterly quotes. You are often given the option of making monthly payments or quarterly payments. In the short-term, the monthly payment seems to be attractive and a lot more affordable for many people.
But mind you, as insurance premiums increase in the future due to market conditions, you will regret taking the monthly plan. That is why we strongly recommend that you opt for annual premiums.
You may need to shell out a significant sum at the start of your plan. But it’s well worth it because it’s an investment in your life and you’ll save a lot of money in the future.
3. Renew for the longest time possible
The best way to save on your life insurance premiums overtime is to opt for the maximum cover possible. Many insurance providers allow you to take a policy for up to 30 years. If you’re in your late 20s or early 30s, we strongly recommend taking such a cover because you’ll reach very close to the age of 60 by then.
You may be required to renew your insurance again once the term has expired. However, you would have saved a lot of money with your first insurance policy than you would if you had gone for a short-term policy.
On the other hand, if you’re still in your 20s, there are pros and cons to opting for a 20 or 30 year cover. If you opt for a 20 year cover in your early 20s, you will be in your 40s when the term expires. Renewing your policy when you’re between the years 40 – 50 will lead to higher premiums than you would if you were to cross over the 50 barrier with no significant health problems.
It is recommended that you study the rates for a short-term plan as well as a long-term plan and choose accordingly. If you’re still young and are yet to start a family, opt for a short-term plan and then go for a long-term plan once you begin your family. The same rule can be applied when purchasing health insurance as well.
4. Keep your credit rating at optimum levels
If you have a poor credit, you may be required to shell out a higher amount in insurance premiums. However, don’t worry. As your credit score improves, your insurance premiums will also continue to reduce over the long-term. Try and maintain a good credit score at all costs. Pay back all of the debt that you have especially the ones that you owe to the IRS.
Always make sure that the total debt to credit ratio in your credit cards is less than 50 percent. For example, if you had a credit card with a limit of $5,000, make sure that your debt is always less than $2,500 each month. By keeping it that way, you not only reduce your insurance premiums but also are likely to get loans faster.