1) GET LIFE INSURANCE COVERAGE BEFORE YOU NEED IT
It is important to take a proactive approach and start paying into life insurance long before you actually need it. If you start your policy when you are younger and healthier, you set yourself up for long-term savings.
Consider this process like starting a new account and relationship with a bank. When you are a long standing loyal client who may happen to have some late fines or overdraft charges, they will be much more lenient, than with individuals who have recently opened a brand new account.
Life insurance companies will give you better rates when you purchase life insurance at an early age. Most policies give you the choice to reestablish your coverage without another health exam.
While it may appear to be unnecessary to buy life insurance when you don’t need it, it is important to lock in a lower rate when you are younger, because it will often be much lower than ones you can obtain later in life, especially after age 50.
2) PAY YOUR PREMIUMS ANNUALLY AND NOT MONTHLY
If it is possible for you to budget ahead of time, it is recommended that you pay your life insurance policy every year, instead of monthly.
Some life insurance companies will charge you an extra fee in the event that you pay your policy on a month to month basis. The less payments that you can make in a year, the less you will pay. This is a basic and often overlooked approach to take advantage of saving money on your life insurance policy.
Regardless of whether you can make yearly payments, in the event that you can do a quarterly payment consistently, that can also help you save. On a related note, a most insurance providers will charge less or give you a better rate when you set up auto-payments directly from your bank account.
3) IF YOU ARE HEALTHY AVOID GUARANTEED ISSUE POLICIES
When you are a healthy person with an active lifestyle, it is best to stay away from guaranteed issued policies, the only exception would be if you need a policy in place very quickly. Although many companies claim to offer great guaranteed rates, you are much more likely to receive a lower rate when you take the health exam. On the other hand if you have known health issues and a family history of cancer or other serious illnesses, it is best to go with the guaranteed issue. Use your best discernment on deciding which route to take that would fit your needs best.
4) WHEN TO GET RE-EVALUATED FOR BETTER RATES
One of the most significant things you can do to take advantage of your life insurance policy is to improve your health and live a healthy lifestyle. Most life insurance companies require a health or physical exam before issuing coverage.
The physical exam process may reveal medical problems like high blood pressure or high cholesterol, both which will make your premiums higher.
If you experience a significant improvement in your health after you have set up your life insurance agreement, you can request another medical exam and to be reconsidered for coverage. If you lose significant amount of weight for an extended amount of time, lower your blood pressure, or overcome a serious ailment, this could reduce your premium significantly and help you save money in the long run.
People who smoke commonly pay 2-5 times more for life insurance than non-smokers. Any individuals who were smokers when they applied for coverage, but quit since they took the exam, can request to be reconsidered for lower rates. Doing this can reduce your rate about 10% and save you money in the long run.