How to Pay Less on Life Insurance Premiums

Premiums are one of the main reasons that keep people from getting life insurance policies, and that’s understandable. It’s hard to spend large sums of money on something that you are statistically unlikely to need. The good news is that you don’t need to spend large sums at all. Here are the many tricks and tips you can use to keep your insurance premiums low.

1 – Get insured sooner, rather than later

The younger you are, the cheaper insurance policies are going to be. And insurance premiums on ongoing policies don’t go up as you grow older. This means that by getting a life insurance policy early on, you can lock in low premiums, and keep paying very little throughout the coverage period.

For example, let’s say you figure out that you need life insurance until you are seventy years old. There are two ways to get it — you can buy a 30-year policy when you are forty years old, or you can get a 20-year policy when you turn 50. The catch is that by the time you turn 50, your premiums will be so high that those 20 years of coverage may cost as much as getting 30 years of coverage in your forties. In some cases, it may even be more expensive.

As a general rule, the sooner you get life insurance, the less you’ll end up having to pay.

2 – Get healthy

Insurance companies are in the business of managing risks. That’s why they ask you so many questions before they sign you up, and why you usually need to go through a health exam before you get a life insurance policy. Companies need to know how likely you are to die in the near future, so they can adjust the price of premiums accordingly.

One way to reduce that risk is to get into health and fitness. Having a healthy lifestyle is one of the few ways in which an older person can pay cheaper premiums than a younger one. A 20-year-old will always pay less than a 50-year-old, but a 50-year-old who runs marathons may get cheaper premiums than a 40-year-old who’s sedentary.

There are even insurance policies that tie lower premiums to fitness goals. Meaning that if you can exercise a set number of hours every week, they will charge you less for your life insurance premiums.

3 – Compare prices and products

People often discuss “life insurance” as if it is a binary thing, you either have it or you don’t. But the reality is much more complicated. Insurance policies are products, and insurance companies have come up with hundreds of different deals and variations in order to help sell more of that product.

This means that one of the best ways to pay lower premiums is to compare different products and prices. You can pay very low premiums if you choose a policy with a low payout, or with no living benefits, or that only pays out a year after your death. There are dozens of perks and factors that bring the value of life insurance up or down, and comparing your option using something like Insurance Hero’s website will help you find the best payment processing company.