How to Save Big Time Bucks on Life Insurance before Retirement

By | March 8, 2013

Most people agree that life insurance is a necessary expense that they are willing to take on to make sure their family is cared for if something happens to them. However, the expense involved can be overwhelming and may even cause reconsideration on whether or not life insurance should be purchased. There are several ways to save big time bucks on life insurance and make sure you still get the coverage you want:

1.Shop around for the best policy

It may seem that this goes without saying, but many people think that insurance policies cost the same across the board. This is untruth that can cause you to spend more money than you should on life insurance coverage. Different companies offer different prices for similar policies. It pays to shop around and make sure you are getting a good price for your policy. Do preliminary researches on costs online before you head out to the agent’s office for a face to face.

2. Purchase the policy while you are young and healthy

It is much easier to obtain affordable life insurance while you are relatively young and before health issues take hold and begin to manifest, if they ever do. As your age increases, so does the risk for an insurance company to cover you with a life insurance policy. If you lock in your premium well before you may ever need the policy proceeds, you can shave hundreds off the price of your life insurance policy.

3. Buy term instead of whole life

While whole life insurance policies can offer investment options and you can borrow against any cash value accrued, whole life policies cost significantly more than term life policies. The increase in cost includes the cost for the investment portion. Unless you have health conditions that may make renewing a term policy difficult and you need the guarantee of coverage that whole life insurance offers, opt for term life insurance instead. These policies offer more than adequate coverage for when you need it and cost less.

4. Make healthy lifestyle choices

The most attractive customers for life insurance companies are those who care for themselves and their bodies through healthy lifestyles. Avoiding such habits as smoking, recreational drug use, and over indulging in alcohol helps you to be healthier and the results of your abstinence from these harmful substances shows up in your medical examination to obtain life insurance. It also helps if you are not overweight, because carrying extra weight can contribute to many life threatening health conditions such as diabetes, high blood pressure, and heart disease.

5. Only buy what you need

Sit down and determine exactly how much life insurance you need to take care of your debts and your survivors. This figure may be significantly less than what you think. If you only purchase the amount of coverage that you need to take care of your responsibilities, you will not over pay for coverage that is way above these obligations. Pay for only what you need and nothing more.